US stocks pulled well off session lows but were still falling on Thursday as concerns about the financial health of Portugal's top listed bank gave investors a reason to cash in recent gains. With the Dow and the S&P 500 near record highs, the slide in Europe triggered by financial shares quickly translated into broad selling on Wall Street. The S&P 500 briefly lost 1 percent, a daily drop the benchmark has not seen since April 10.
Espirito Santo Financial Group, the largest shareholder in Portugal's Banco Espirito Santo, suspended trading in its shares and bonds, citing "material difficulties" at parent company ESI. The bank's shares tumbled 17.2 percent. The S&P 500 financial sector index fell 0.8 percent. The Dow Jones industrial average fell 71.67 points or 0.42 percent, to 16,913.94. The S&P 500 lost 6.86 points or 0.35 percent, to 1,965.97. The Nasdaq Composite dropped 15.84 points or 0.36 percent, to 4,403.20.
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