US stocks fell sharply from the opening bell today pushing the blue-chip Dow down more than 1 per cent, as a proposed $60 billion acquisition by drug giant Pfizer failed to inspire investors still reeling from last week's sell-off.
The Dow Jones industrial average fell 148 points, or 1.72 per cent, to 8,535. The broader Standard & Poor's 500 index lost 13.60 points, or 1.48 per cent, to 907. The Nasdaq shed 19 points, or 1.35 per cent, to 1,355.
The planned mega-merger between Pfizer and Pharmacia left investors cold. Pfizer agreed to buy smaller rival Pharmacia for $60 billion in stock, creating a behemoth with a global market share of 10 per cent or more.
The second quarter earnings season is heating up in what will be one of the most hectic weeks of the second-quarter reporting period.
Roughly two-thirds of Standard & Poor's 500 companies are set to issue results over the next two weeks, while half of the 30 members of the Dow are slated to release results.
Doubts over corporate credibility, fears of another attack on the United States and apprehension over the earnings season are roiling Wall Street.
The S&P 500 lost 6.85 percent and the Dow sank 7.4 per cent last week - suffering their largest weekly drops since the market reopened following the September attacks.
The Nasdaq sank 5.2 per cent, its largest weekly decline since April.