US STOCKS fell for a third day, led by banks on concern that Brazil's currency devaluation will infect other economies and damage the earnings of companies that do business in Latin America.

The Dow Jones had its worst loss since 1 October, falling 228.63 points, or 2.5 per cent, to 9,120.93.

The Standard & Poor's 500 index fell 22.21 points, or 1.8 per cent, to 1,212.19. The Nasdaq lost 39.99, or 1.7 per cent, to 2,276.82.