U.S. stocks slid, sending the Standard & Poor’s 500 Index to a six-week low, as concern that European government debt levels will derail the global recovery overshadowed growth in American service industries and jobs.

Walt Disney Co., American Express Co. and General Electric Co. led losses in the Dow Jones Industrial Average after European Central Bank council member Axel Weber said there is a threat of “grave contagion effects” from the debt crisis. ConocoPhillips slumped 2.2 percent as oil dropped below $80 a barrel for the first time since March 26. News Corp. fell 3.9 percent after the owner of the Twentieth Century Fox film studio forecast a decline in profit.

The S&P 500 retreated 0.7 percent to 1,165.87 at 4 p.m. in New York after posting a gain for about 15 minutes midday. The Dow fell 59.94 points, or 0.6 percent, to 10,866.83. The MSCI World Index of shares in 23 developed markets slumped 1.2 percent, wiping out its gain for 2010.

(Source: Bloomberg.com)