US stocks slid on Thursday, after Microsoft's proposed job cuts and grim earnings rattled investors, while economic data showed further deterioration in the labour and housing markets.
Microsoft Corp's stock fell as much as 11 percent to the lowest since 1998 and was among the biggest drags on the Dow and the Nasdaq, after the world's largest software maker said it would cut up to 5 percent of its estimated work force over the next 18 months.
"Coming into some OK earnings numbers from IBM and Apple, it was thought that Microsoft at least would follow suit," said Paul Nolte, director of investments at Hinsdale Associates in Hinsdale, Illinois.
Energy stocks also dove in sync with falling crude oil prices, with Exxon Mobil down 2.8 percent at $77.07 and Chevron down 3.3 percent at $68.86. Both dragged on the Dow. The Dow Jones industrial average fell 207.33 points, or 2.52 percent, to 8.020.77. The Standard & Poor's 500 Index slid 20.71 points, or 2.46 percent, to 819.53. The Nasdaq Composite Index tumbled 47.06 points, or 3.12 percent, to 1,460.01.