Wall Street resumed its slide on Friday, with the Nasdaq turning negative for the year, after China's weaker trade data and disputes about a second Greece bailout hurt already fragile sentiment. Bank stocks ranked among the top decliners.
The Federal Reserve said it plans to expand the number of banks it will subject to annual tests used to determine if stock dividends can be increased and whether an institution is holding enough capital. The KBW regional banks index fell 1.9 percent and the S&P financial sector index also lost 1.9 percent.
The Nasdaq Composite erased its gains for the year, while the Dow and the S&P 500 were on track for a sixth straight week of losses. A string of sub-par US economic data in the past few weeks has turned investors away from equities.
The Dow Jones industrial average lost 153 points, or 1.26 percent, to 11,971.36. The Standard & Poor's 500 Index fell 16.98 points, or 1.32 percent, to 1,272.02. The Nasdaq Composite Index dropped 35.27 points, or 1.31 percent, to 2,649.60.
The S&P 500 has fallen more than 7 percent from its intraday peak early last month. Many see the benchmark index sliding back to around 1,250, its March low, where valuations could bring investors back into equities. The PHLX semiconductor index tumbled 1.7 percent, sinking to its lowest since early December. The SOX fell below its 200-day moving average for the first time since last October.
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