U.S. stocks slid on Wednesday as a surprisingly weak new home sale exacerbated investors' worries about economic recovery. Financial, energy and tech sectors led the market down.

Homebuilders lost ground after the U.S. Commerce Department said new home sales decreased 3.6 percent in September. Economists had expected sales jumped for the sixth straight month.

Investors' concern about weak economy grew after Goldman Sachs Group Inc. lowered its expectation for the U.S. economic output in the third quarter to an annual rate of 2.7 percent from an earlier forecast of 3 percent. The government report on third-quarter GDP is scheduled to be released on Thursday.

A strengthening dollar and falling commodities prices weighed on the market. Energy and basic material stocks were among worst performers as crude futures tumbled more than 2 percent to settle below 78 U.S. dollars a barrel.

Financials were sharply lower as investors learned that GMAC Financial Services may need a third government bailout. U.S. government has already pumped 12.5 billion rescue aid into the auto and mortgage lender.

The Dow Jones fell 119.48, or 1.21 percent, to 9,762.69. Broader indexes also tumbled. The Standard & Poor's 500 index lost20.78, or 1.95 percent, to 1,042.63 and the Nasdaq slid 56.48, or 2.67 percent, to 2,059.61.

(Xinhua News Agency October 29, 2009)