128 Mar 2007 01:09
Wall Street has been nervous lately that a drop in housing values will further weaken subprime mortgage lenders, who make loans to people with poor credit, and make consumers feel less wealthy and rein in spending. Consumer spending makes up about two-thirds of U.S. economic activity.
The Dow fell 71.78, or 0.58 percent, to 12,397.29. Tuesday's selloff put the blue-chip index back into negative territory for the year.
Stocks stumbled Tuesday as investors grew wary when new data raised the possibility that the nation's weak housing market would seep into the broader economy and crimp consumer spending.
Overseas, Japan's Nikkei stock average fell 0.90 percent. Britain's FTSE 100 edged up 0.01 percent, Germany's DAX index advanced 0.43 percent, and France's CAC-40 gained 0.19 percent.