Wall Street slides on banks and recession fears

NEW YORK (Reuters) - Stocks fell further in early trading on Wednesday on worries of more credit losses for banks and as signs of further contraction in consumer spending added to anxiety over the impact from the recession.

Highlights:

* The major indexes dropped more than 2 percent, led down by the financial sector. The S&P financial index <.GSPF> fell 4.6 percent, while Dow component JPMorgan Chase lost 4.6 percent to $25.14.

* The Dow Jones industrial average <.DJI> fell 185.42 points, or 2.19 percent, to 8,263.14. The Standard & Poor's 500 Index <.SPX> was down 22.74 points, or 2.61 percent, at 849.05. The Nasdaq Composite Index <.IXIC> gave up 35.37 points, or 2.29 percent, at 1,511.09.

(Reporting by Leah Schnurr; Editing by James Dalgleish)