US stocks plummet amid fear of slowing economy

US stocks, fell sharply for the third straight day Thursday in the fears to a higher inflation and slowing economic growth, despite lower oil prices for the fifth day in a row.

Dallas Fed Bank President Richard Fisher said Thursday in a speech in Waco, Texas, repeated earlier comments that inflation shows ``little inclination'' to slow and is moving closer to the `` upper end of the Fed's tolerance zone.'' Fisher suggested earlier this week that the central bank may have to raise interest rates further to tame inflation stoked by a post-hurricane surge in energy prices.

Moreover, the Labor Department announced that the first-time jobless claims rising to 390,000 last week, an increase of 21,000 from the previous week,.while economists expected 350,000 claims, according to a Bloomberg News survey. Investors were increasingly nervous about employment and concern about a slowdown in economic expansion Resulted from Hurricanes Katrina and Rita.

As US fuel imports surged and demand stagnated, crude oil tumbled to a two-month low and gasoline slid for a sixth session.

The Dow fell 30.26, or 0.29 percent, to 10,287.10, adding to a loss of 218.12 over the previous two sessions. Broader stock indicators also fell. The tech-focused Nasdaq composite index dropped 18.94, or 0.9 percent, to 2,084.08, and the Standard & Poor's 500 index lost 4.90, or 0.41 percent, to 1,191.49.

Declining issues outnumbered advancers by more than 2 to 1 on the New York Stock Exchange, where volume came to 2.14 billion shares, compared with 1.92 billion traded on Wednesday.

Source: Xinhua