A street sign is seen in front of an American flag hanging on the front of the New York Stock Exchange. (Lucas Jackson / Reuters)
NEW YORK (AP) -- Wall Street resumed its slide Monday as Wall Street absorbed a gloomy outlook for the banking sector as well as bleak news from the National Association of Homebuilders. The major stock market indexes each fell more than 1.5 percent, with the Dow Jones industrial average giving up more than 200 points.
Concerns about the banking sector dominated the session. Goldman Sachs Group Inc.'s downgrade of large banks, and its estimate that Citigroup Inc. would have to write down $15 billion due to its exposure to risky debt over the next two quarters unnerved Wall Street.
Other sectors suffered big hits during the session, including airlines and automakers.
Housing stocks also suffered. The worry on Wall Street is that the housing market is getting so weak it will crimp consumer spending, which until now has helped keep the economy afloat. Ahead of the holiday shopping season, any signs that Americans are pulling back could prevent a December rally.
The NAHB's November housing forecast remained unchanged after the October figure was revised to 19 from 18. Economists polled by Thomson/IFR had expected the index would come in at 18.
"I think that a lot of folks are digesting the news from last week and they're worried about the economy and the ability to grow earnings at the larger companies in America," said Rob Lutts, chief investment officer at Cabot Money Management Inc. in Salem, Mass.
According to preliminary calculations, the Dow industrials fell 218.35, or 1.66 percent, to 12,958.44.
Broader stock indicators also declined. The S&P; 500 index fell 25.47, or 1.75 percent, to 1,433.27, and the Nasdaq composite index fell 43.86, or 1.66 percent, to 2,593.38.
La degradación de Citigroup llevó este lunes a la mayor caída en tres meses del Dow Jones y del S&P 500, echando leña a los miedos por más pérdidas relacionadas a la crisis hipotecaria.

Goldman Sachs instó a los inversores a vender las acciones de Citigroup, declarando que el banco podría realizar rebajas de $15 mil millones y con serias reducciones de ganancias. Además, la aseguradora más grande del mundo, Swiss Re, también alimentó los miedos y anunció que podría realizar rebajas de $1,07 mil millones.

En total, el Dow Jones Industrial Average se hundió en 216,88 puntos, o 1,65%, para cerrar por debajo en 12.959,91. El Standard and Poor's 500 Index se sumergió en más de 25,47 puntos o 1,75% para finalmente caer hasta los 1433,27. El Nasdaq Composite Index sufrió pérdidas de 1,66% para terminar en 2.593,38, 43,86 puntos debajo de su último registro.

Las acciones de Citigroup declinaron en 5,9% a $32, mientras que las del Bank of America, el segundo banco más importante, se deslizaron en 3,5% $42,82. El S&P Financial Index finalmente registró bajas de 3% al paso de que la crisis hipotecaria no deja descansar a Wall Street.