U.S. Stocks Tumbling on Credit Woes

At 12:40 PM the dow was down 310 points, the NASDAQ was down 47 points, and the S & P 500 was down 35 points.

Salem-News.com

(NEW YORK) - The Dow industrials dropped more than 200 points at the start of Thursday's session following more credit worries.

The Dow Jones industrial average tumbled by as much as 241 points, before rebounding a little to stand down 98 points at 8:10 AM PT.

The S&P 500 was down 13.88 points while the Nasdaq Composite index was down 5.20 points. (Updated 8:11 AM)

At 12:40 PM the dow was down 310 points, the NASDAQ was down 47 points, and the S & P 500 was down 35 points.

CNN said stocks sank after French bank BNP Paribas said it was hit by problems in the U.S. subprime mortgage sector.

The bank said it was freezing three funds because current conditions make it impossible to value their assets.

AIG, the world's largest insurance company, warned Thursday morning that it saw mortgage delinquencies spreading after posting better-expected quarterly earnings late Wednesday. AIG shares tumbled more than 5 percent on the news CNN reported this morning.

Salem-News.com will have more on this story as soon as it becomes available.