US mkts end with modest loss; Dow down 36 points

Wall Street posted a modest loss, with seven of the ten sectors ending the day in negative territory. More bad news in the financial sector and a report showing the Federal Reserve is more worried about a recession than it has previously been some of the key triggers.

Washington Mutual led financials to their biggest drop this month. The bank said it will receive a $ 7 billion capital injection from private equity firm TPG, sharply diluting its stock. It also slashed its dividend and said it expects a large quarterly loss. Banking & mortgage stocks were the biggest losers.

The market extended its decline after minutes from the latest Fed policy meeting showed some of the central bankers saw the possibility of a 'prolonged and severe economic downturn.'

The Dow slipped 35.99 points, or 0.29%, to 12,576.44. The Standard & Poor's 500 index dropped 7 points, or 0.51%, to 1,365.54, and the Nasdaq composite index declined 16.07 points, or 0.68%, to 2,348.76.

A look at how the Indian ADRs performed: