US stocks fall on weak sales data

The market failed to sustain Thursday's rally

Leading US shares have fallen on Friday as renewed worries about the economic outlook led to profit-taking after strong gains the day before.

The biggest monthly decline in US retail sales since 1992 deepened investors' economic fears.

Earlier markets in Europe and Asia sprung to life on hopes that a global summit in Washington would make some progress in tackling the downturn.

The main Dow Jones average fell 3.8%, or 337.94 points, to end at 8,497.31.

The index had jumped 6.7% the day before.

Shares in energy firms were the top fallers after leading the market's rise on Thursday.

"People realize yesterday's euphoric bounce was overdone and it feels like the appropriate measure is to take profits in the names that got ahead of themselves yesterday," said trader Justin Wiggs at Stifel Nicolaus Capital Markets in Baltimore.

The technology-laden Nasdaq index fell 5%. Shares in Sun Microsystems lost ground after the company said it would cut up to 6,000 jobs.

Market moves

Earlier the UK's FTSE 100 index ended 1.6% higher, while shares in Germany and France also gained.

Germany's Dax index rose 1.3% and France's Cac added 0.7%.

Stocks across Asia, with the exception of India, rose after a massive rally on Wall Street on Thursday.

G20 leaders are meeting this weekend to focus on measures to prevent a repetition of the global financial crisis.

E-mail this to a friend

Printable version