US mkts open with deep cuts; financial stks lead decline

US markets have opened with a deep cut with financial stocks leading the decline. The Dow Jones and Nasdaq open down 1.45% and 2% respectively. Bear Stearns sale to JP Morgan Chase at USD 2 per share is stirring up fears among global investors that other financial companies could have sizable exposure to the troubled credit markets.

At 19.10 IST, the Down Jones was trading down 170 points at 11800.49, while the Nasdaq was down 40 points at 2,172.

Banking stocks traded weak but were not as weak as their brokerage counterparts. Most other stocks are down 1-2%. Some de-leveraging is also being seen across the board. e-Trade is down 11%.

Oil prices have come off about USD 5 per barrel. Commodities are on a free fall as investors liquidate profitable positions.