By Ellis Mnyandu
NEW YORK (Reuters) - Stocks fell on Friday as a loss of more than half-a-million jobs last month heightened fears that the worst financial crisis since the 1930s is becoming even more severe.
Investors, fearful that the job losses will cause consumers to cut back spending and make the profit outlook more dire, sold stocks more broadly, but the energy sector was the biggest casualty.
Exxon Mobil's
"The market is so fearful now," said Ray Rund, head of research at Shaker Investments in Cleveland, Ohio. "Anything that feeds the fear is going to see a negative reaction until there's some news that either reverses that or says the (economic) problems are getting solved."
The Dow Jones industrial average <.DJI> fell 171.40 points, or 2.05 percent, to 8,204.84. The Standard & Poor's 500 Index <.SPX> declined 16.31 points, or 1.93 percent, to 828.91. The Nasdaq Composite Index <.IXIC> shed 20.17 points, or 1.40 percent, to 1,425.39.
The S&P 500 is down 43.6 percent for the year.
Mounting layoffs present a major obstacle for stocks that have been trying to break out of 11-year lows.
Exxon Mobil shares fell to $43.56 on the News York Stock Exchange, and Chevron shares declined to $70.80.
Technology shares also took a beating, with Microsoft Corp
Shares of computer and printer maker Hewlett-Packard
Boeing fell 6 percent to $36.85 as investors fretted about yet more delays for its new Dreamliner jet.
Shares of other big blue-chip manufactures also fell, with chemical maker DuPont
Investors were also on edge about the fate of the U.S. auto industry, with executives of the Big Three car makers, including General Motors
GM shares slid 4.4 percent to $3.93, while Ford
Rep. Barney Frank warned that it would be an "unmitigated disaster" if a big U.S. automaker is allowed to collapse.
(Editing by Jan Paschal)
