New York: Major US stock indices were led lower on Friday by banks and retailers amidst the worst quarterly slump since 2002.

Concern grew that the already beleaguered credit scene would get tighter because of anticipation of further writedowns.

JC Penney, the third-largest US department-store chain, dropped to a two-month low after it expressed worry that lower consumer spending would hurt its first quarter earnings.

Citigroup Inc, the country's largest bank, tumbled on an analyst's prediction that it would not be able to maintain its 1.28 dollar per share annual dividend.

The blue-chip Dow Jones Industrial Average lost 86.06 points, or 0.70 per cent, to 12,216.40.

The broader Standard Poor's 500 Index was down 10.54 points, or 0.80 per cent, to 1,315.22.

The technology-heavy Nasdaq Composite Index dropped 19.65 points, or 0.86 per cent, to 2,261.18.

The US currency dropped against the euro to 63.30 euro cents from 63.38 euro cents on Thursday.

The dollar also fell against the Japanese currency to 99.24 yen from 99.65 yen on Thursday.

Source : IANS