US stocks slid on Monday, with the Nasdaq losing nearly 2 percent, amid concern about Google Inc's valuation and doubts about holiday spending after a disappointing sales estimate from Wal-Mart Stores Inc.
In addition, downward pressure on the dollar for a fourth straight day hurt demand for US investments, while a rise in crude oil prices above $60 a barrel added to concerns about consumer spending.
While stores were busy on Black Friday, with more retailers opening their doors at midnight on Thanksgiving night or even earlier to capture eager shoppers, analysts worry that the high traffic may not lead to fat margins. Wal-Mart started its heavy discounting weeks before Thanksgiving, while other retailers beefed up their promotions just ahead of Black Friday.
The Dow Jones industrial average was down 165.99 points, or 1.35 percent, at 12,113.46. The Standard & Poor's 500 Index was down 18.90 points, or 1.35 percent, at 1,382.05. The Nasdaq Composite Index was down 50.89 points, or 2.07 percent, at 2,409.37.
Ford Motor Co shares fell 3.8 percent to $8.20 after it announced plans to borrow $18 billion by pledging assets as collateral to fund its restructuring. In another sign of investor worries, the Chicago Board Options Exchange Volatility Index jumped 13.4 percent on Monday.
Shares of Wal-Mart, the world's largest retailer, fell 2.5 percent to $46.69 after it estimated November sales fell 0.1 percent at US stores open at least a year.
Shares of Web search company Google fell 3.1 percent to $489.17 and were the biggest drag on the Nasdaq after the report in Barron's. Shares of US airlines fell on Monday, with Continental Airlines down nearly 7 at $42.24, partly on rising oil prices. Shares of AMR Corp, the operator of American Airlines, slid 7.1 percent to $31.67 on NYSE.
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