US stocks retreated on Wednesday as technology shares fell after news IBM is planning layoffs and a disappointing Treasury note auction raised concerns of flagging foreign interest in US government debt, which could bode poorly for the economy. The news overshadowed an early rally after unexpected increases in home sales and orders for durable goods fuelled hopes the economic downturn may have found a bottom.
Data suggested weak demand for the Treasurys $34 billion auction of new five-year securities and US bonds extended declines, while Britain saw its first failed government debt auction since 2002. The Dow Jones industrial average dropped 56.55 points, or 0.74 percent, to 7,603.42. The Standard & Poors 500 Index fell 8.38 points, or 1.04 percent, to 797.74. The Nasdaq Composite Index dropped 16.68 points, or 1.10 percent, to 1,499.84.
Comments
Comments are closed.