By Angela Moon
NEW YORK (Reuters) - Wall Street stocks tumbled on Friday, with major indexes falling 2 percent after data showed U.S. jobs growth ground to a halt in August, adding to worries about the health of the economy.
Nonfarm payrolls generated no new jobs last month as sagging consumer confidence discouraged already skittish U.S. businesses from hiring, keeping pressure on the U.S. Federal Reserve to provide more monetary stimulus to the economy.
"This number is close to what the market had feared the most," said Jeff Kleintop, chief market strategist for LPL Financial in Boston.
"It will definitely have an impact how the Fed thinks and what additional actions they should take."
Stocks had gained ground recently on hopes that data reflecting a weak economy would prompt the Fed to introduce new stimulus. However, some say there is only so much the Fed could do.
The Dow Jones industrial average was down 182.13 points, or 1.58 percent, at 11,311.44. The Standard & Poor's 500 Index was down 19.75 points, or 1.64 percent, at 1,184.67. The Nasdaq Composite Index was down 35.90 points, or 1.41 percent, at 2,510.14.
Bank shares fell, with the KBW banks index dropping 2.6 percent. The Federal Housing Finance Agency is suing big lenders like Bank of America Corp, JPMorgan Chase & Co and Goldman Sachs Group Inc over mortgage practices.
Bank of America fell 6 percent to $7.43 and JPMorgan lost 3.7 percent to $34.95, while Goldman stumbled 4.2 percent to $107.40.
Further pressuring equities was confirmation that Greece will miss its 2011 deficit target and uncertainty over Italy's commitment to austerity measures, renewing fears about the fiscal crisis in the region.
(Editing by Jeffrey Benkoe)
