US blue chips fell nearly 1 percent on Thursday after a rocket hit the Israeli city of Haifa. Stocks added to losses caused by a record oil price that stoked fears of inflation and slower profit growth.
Steep energy prices were cited as a factor in the brokerage downgrade of retailer Wal-Mart Stores Inc, suggesting weakness in the retail sector.
The Dow Jones industrial average was down 97.33 points, or 0.88 percent, at 10,915.85. The Standard & Poor's 500 Index was down 7.17 points, or 0.57 percent, at 1,251.43. The Nasdaq Composite Index was down 13.71 points, or 0.66 percent, at 2,076.53.