US stocks slid on Tuesday after oil prices jumped above $129 a barrel and a key inflation gauge rose more than expected, adding to mounting concerns about US consumers' discretionary spending power.
Weak quarterly results and outlooks from discount retailer Target Corp and home improvement chain Home Depot Inc further underscored how consumers are struggling as gasoline prices soar and the value of their homes drops.
Bank shares were the biggest drags on the S&P 500 and the Dow, after an influential analyst warned that the credit crisis was far from over. The Dow Jones industrial average slid 223.09 points, or 1.71 percent, to 12,805.07. The Standard & Poor's 500 Index was down 14.64 points, or 1.03 percent, at 1,411.99, while the Nasdaq Composite Index was down 28.33 points, or 1.13 percent, at 2,487.76.
J.P. Morgan, the No 3 US bank, dropped 4.8 percent to $43.78 on the New York Stock Exchange, while shares of Citigroup Inc, the largest US bank, declined 3.9 percent to $22.08. Chipmaker Intel Corp dropped to $24.10, putting the stock among the top drags. SanDisk shares tumbled 3.6 percent to $28.95. Shares of Home Depot, the largest US home improvement chain, fell 6 percent to $27.12 after the retailer posted a 66 percent slide in quarterly profit.
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