Dow Jones: 11,397.91 (-246.58) Nasdaq: 2,614.92 (-52.93) SP 500: 1,200.86 (-23.72):US STOCKS suffered their worst loss in two weeks yesterday after comments from Germanys finance minister caused investors to fear Europes solution to its debt crisis may not come fast enough.

The SP index had risen for two straight weeks for the first time since July, riding a wave of euphoria built on optimism that European leaders had a newfound commitment to tackle a crisis that threatened financial stability and global growth.

The rapid rally left the market susceptible to swift declines. German Finance Minister Wolfgang Schaeüble speaking of an October 23rd European Union summit on the debt crisis,¨ tempered enthusiasm, saying, we wont have a definitive solution this weekend.

US bank earnings also contributed to the selling pressure. Wells Fargo shares fell 8.4 per cent to $24.42 after the US lender financial results fell short of expectations.

The KBW Bank index lost 3.9 per cent.

The CBOE Volatility index VIX, Wall Streets so-called fear gauge, rose 16.6 per cent to 32.92, its highest one-day jump since August.

The VIX is a 30-day risk forecast of stock market volatility conveyed by SP 500 index options; it generally moves inversely to the SP benchmark.

The Dow Jones industrial average was down 246.58 points, or 2.12 per cent, at 11,397.91.

The Standard Poors 500 Index was down 23.72 points, or 1.94 per cent, at 1,200.86.

The Nasdaq Composite Index was down 52.93 points, or 1.98 per cent, at 2,614.92.

Trading volume was light, with just 6.73 billion shares exchanging hands on the New York Stock Exchange, NYSE Amex and Nasdaq for the day, well below the years daily average so far of about 8 billion.

Events in Europe overshadowed a $21 billion deal by Kinder Morgan Inc to buy rival El Paso, combining the two largest natural gas pipeline operators in North America in a huge bet on the fast-growing market for that fuel.

El Pasos shares surged 24.8 percent to $24.45 and Kinder Morgan shares jumped 4.8 per cent to $28.19.

Shares of Citigroup fell 1.7 per cent to $27.93. – (Reuters)