Wall St slips on credit crisis fear; Dow down 134 pts

US markets kicked off June on a low note. The stocks slid on renewed fears that the credit crunch is yet to run its course after S&P downgraded debt ratings of three big securities companies.

Shares of Lehman Brothers, Morgan Stanley and Merrill Lynch fell sharply as S&P's move signaled that financial institutions, who have written down more than $ 350 billion in losses related to sub prime mortgages globally, are still vulnerable.

In the economic news, the May ISM index, rose 2.1%, suggesting a slight contraction in United States manufacturing activity.

The Dow Jones industrial average plunged 134.50, or 1.06%, to 12,503.82. The S&P 500 index slipped 14.71 points, or 1.05%, to 1,385.67. The Nasdaq composite index was down 31.13 points, or 1.23%, to 2,491.53.

A look at how the Indian ADRs performed: