US stocks were sharply lower today as a possible debt default at a Dubai state-owned conglomerate sparked fears of renewed financial turmoil.
Financial stocks were among the hardest hit, with both Bank of America and Citigroup down more than 3 per cent. The Select Sector SPDR Financial ETF lost 2 per cent.
On Wednesday, Dubai said it would ask creditors of state-owned Dubai World and builder Nakheel, with $80 billion in total debt, for a standstill agreement on their debt as a first step towards restructuring.
The Dow Jones industrial average fell 187.75 points, or 1.79 per cent, to 10,277.65. The Standard & Poor's 500 Index tumbled 23.41 points, or 2.08 per cent, to 1,087.53. The Nasdaq Composite Index dropped 45.83 points, or 2.11 per cent, to 2,130.14.
The US dollar rose 0.6 per cent against a basket of currencies, while January crude futures dropped 4.2 per cent. Dow component Exxon Mobil shares fell 1.8 per cent to $75.11.
"Black Friday" marks the unofficial start to the holiday shopping period, and investors will be watching store cash registers for insight into consumer spending, which accounts for about 70 per cent of the economy.
The S&P retail index fell 1.7 per cent in early trading today.
Reuters