New York Report: Dow Jones below 17,000

US STOCKS tumbled yesterday as the Dow fell nearly 118 points, ending the trading day below the 17,000 mark.

The Dow Jones industrial average lost 0.7 per cent to 16,906.62. The S&P 500 index fell 0.7 per cent to 1,963.71 and the Nasdaq composite index plunged 1.4 per cent to 4,391.46. It was the second straight session of losses after the major indexes set record closing highs at the end of last week.

Internet stocks were hit hard, with Twitter and Pandora Media down seven per cent each. Shares in Google, Amazon and Groupon also slipped by more than two per cent on the day.

Shares in US drug manufacturer AbbVie, which has made a cash-and-stock bid for the UK’s Shire to $51bn, an 11 per cent increase from its earlier bid in May, were down nearly three per cent on the day.