U.S. Stocks Fall as Global Selloff Worsens; Countrywide Drops (Eric Martin)

  The global selloff in stocks continued in the United States after the nation's biggest mortgage lender warned of more delinquencies and the outlook for inflation and unemployment worsened.

  March 1 (Bloomberg) -- The global selloff in stocks continued in the United States after the nation's biggest mortgage lender warned of more delinquencies and the outlook for inflation and unemployment worsened.

  Countrywide Financial Corp., JPMorgan Chase & Co. and Intel Corp. led the declines. Financial shares fell to their lowest this year as the prospects for more defaults on subprime loans grew.

  Today, the Standard & Poor's 500 Index and Dow Jones Industrial Average each retreated more than 1 percent before paring losses on a report that showed manufacturing expanded last month. The Nasdaq Composite Index slumped to a two-month low. Two days ago, the U.S. market had its worst rout since 2003 as a plunge in Chinese shares sparked declines around the world.

  ``A lot of investors are facing the fact that this was not a one-day move,'' said Jeffrey Swensen, head trader at Batterymarch Financial Management, which oversees $26 billion in Boston. ``There are concerns this is part of a bigger correction.''

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