US STOCKS-Wall Street slides on Fed angst, Wal-Mart disappointment
* Jobless claims near six-year low in latest week
* Wal-Mart shares fall after results
* Indexes down: Dow 1.2 pct, S&P 1.2 pct, Nasdaq 1.5 pct
NEW YORK, Aug 15 (Reuters) - U.S. stocks fell by their most since late June on Thursday as investors fretted the Federal Reserve would soon start to scale back its stimulus and as corporate earnings showed that consumer spending remained weak.
New claims for jobless benefits fell to a near six-year low last week, consumer prices rose broadly in July and homebuilder confidence rose, which could draw the Fed closer to trimming its $85 billion monthly bond-buying program.
The Fed's stimulus has lifted stocks and kept interest rates low. Market participants have lately focused on when, and by how much, the Fed will reduce the program. On Thursday, U.S. Treasuries yields rose to their highest in two years.
"It's a set of data that will add to the September tapering conversation," said Tom Porcelli, chief U.S. economist at RBC Capital Markets in New York.
In a cross current to the strong economic data, Wal-Mart cut its revenue and profit forecasts for the year as U.S. shoppers were pinched by higher payroll taxes and pricier gasoline. Wal-Mart shares fell 2.1 percent to $74.79.
"There's not a resounding improvement in the consumer, July didn't play out well for many retailers," said Art Hogan, managing director at Lazard Capital Markets in New York.
Technology shares were among the worst decliners a day after Cisco Systems reported weak earnings and said it would cut 4,000 jobs amid uncertain demand for its networking equipment. Cisco shares fell 7 percent to $24.72 and the S&P technology sector dropped 1.6 percent.
The Dow Jones industrial average fell 182.89 points or 1.19 percent, to 15,154.77, the S&P 500 lost 20.95 points, or 1.24 percent, to 1,664.44 and the Nasdaq Composite dropped 55.201 points, or 1.5 percent, to 3,614.072.
Trading volume has been low, as it tends to be in August, and will likely continue to be lackluster as earnings season winds down.
Brent oil prices rose towards $111 per barrel on fears that escalating violence in Egypt could affect the Suez Canal or spread in the Middle East. The death toll from nationwide political violence climbed to 525, Egypt's health ministry said. The Market Vectors Egypt Index ETF dropped 0.5 percent after falling 3.1 percent Wednesday.