Highlights:

* The financial sector was the worst performer as concerns of more losses stemming from the credit crisis pulled down shares of Citigroup and JPMorgan Chase .

* Apple Inc was among the top laggards on the Nasdaq.

* The Dow Jones industrial average <.DJI> fell 113.02 points, or 1.31 percent, at 8,486.16. The Standard & Poor's 500 Index <.SPX> lost 18.39 points, or 2.07 percent, at 871.96. The Nasdaq Composite Index <.IXIC> gave up 32.12 points, or 2.04 percent, at 1,539.47.

(Reporting by Deepa Seetharaman; Editing by James Dalgleish)