Stocks fell Thursday, ending a four-day rally, after regulators took action against a former Goldman Sachs subsidiary over its mortgage and foreclosure practices. Traders were also nervous that a jobs report due out Friday could revive worries of another recession in the U.S.
Goldman Sachs fell 3.5 percent after the Federal Reserve ordered the bank to review foreclosure practices at Litton Loan Servicing, saying there was a "pattern of misconduct and negligence" there. Bank stocks fell more than the rest of the market as investors worried about regulatory moves against other banks. Financial stocks in the S&P 500 dropped 2.4 percent, the most of the 10 company groups that make up the index.
The Dow Jones industrial average fell 119.96 points, or 1 percent, to close at 11,493.57.
The Standard & Poor's 500 index fell 14.47 points, or 1.2 percent, to 1,204.42.
The Nasdaq composite index fell 33.42, or 1.3 percent, to 2,546.04.
For the week:
The Dow is up 209.03, or 1.9 percent.
The S&P 500 is up 27.62, or 2.3 percent.
The Nasdaq is up 66.19, or 2.7 percent.
For the year to date:
The Dow is down 83.94, or 0.7 percent.
The S&P 500 is down 53.22, or 4.2 percent.
The Nasdaq is down 106.83, or 4 percent.