NEW YORK, Oct. 27(Xinhuanet)-- US stocks plummeted Thursday as durable goods orders dropped and General Motors Corp., the world's largest automaker, was caught into a probe.

According to reports from the Commerce Department, orders for long-lasting durable goods fell 2.1 percent in September, after a 3.8 percent jump in August. New home sales rose more slowly than expected in September while home prices fell and housing inventories swelled to record levels.

A Labor Department report showed an unexpectedly large drop in new applications for jobless benefits last week as claims related to Hurricanes Katrina and Rita slowed down.

World oil prices inched higher in hesitant trade Thursday as the market began to focus on the upcoming northern hemisphere winter when demand for heating fuel is forecast to surge. New York's main contract, light sweet crude for delivery in December, climbed 43 cents to end at 61.09 dollars a barrel.

On the company news, GM said Thursday that US Securities and Exchange Commission is investigating its pension accounting and dealings with its bankrupt former parts unit Delphi Corp. News of the probe sent GM shares plunging by 6.8 per cent to 27.19 dollarson Wall Street. It made GM the biggest drag on the blue-chip Dow average.

Oil company shares, including Exxon Mobil Corp. and Chevron Corp., fell after Senate Majority Leader Bill Frist ordered a US Senate hearing with testimony from major oil company executives onwhy energy prices are so high.

The blue-chip Dow Jones Industrial Average fell 115.03, or 1.11 percent, to 10,229.95.

Broader stock indicators also lost ground. The Standard& Poor's 500 index dropped 12.48, or 1.05 percent, to 1,178.90, and the Nasdaq composite index lost 36.24, or 1.73 percent, to 2,063.81.

Decliners led advancers by nearly 3 to 1 on the New York Stock Exchange, where volume came to 1.8 billion shares, up from 1.72 billion traded Wednesday. Enditem