US stocks fell on Thursday, extending the week's slide, as a Federal Reserve official issued cautionary comments on inflation for the second time this week, boosting expectations for more interest-rate hikes.
The big losers of the day were oil companies like Exxon Mobil Corp and Chevron Corp as crude oil prices fell to a two-month low, essentially ending the group's hurricane-related rally.
US stock index futures showed little immediate reaction to an announcement after hours by New York authorities that the city has received threats against its subway system.
During the regular session, technology shares such as Dell Inc slumped on investors' concerns that these growth stocks could take a bigger hit than most from rising interest rates.
"It's just that people are worried the Fed is going to keep raising rates, and people are shunning growth stocks," said Ray Rund, managing director and head of research at Shaker Investments.
Stocks extended losses after Dallas Federal Reserve Bank President Richard Fisher said in a speech in Waco, Texas, that core inflation was near the top of its acceptable range, echoing remarks he made earlier this week that signal more rate hikes to come. His previous comments also sparked stock market sell-offs.
The Dow Jones industrial average slipped 30.26 points, or 0.29 percent, to end at 10,287.10. The Standard & Poor's 500 Index declined 4.90 points, or 0.41 percent, to finish at 1,191.49. The technology-laced Nasdaq Composite Index fell 18.94 points, or 0.90 percent, to 2,084.08.
The blue chip Dow average and the broad S&P 500 were down for the fourth day in a row, their longest losing streaks in months, while the Nasdaq notched its third straight decline. The S&P 500 is on track for one of its worst weeks of the year.
Investors also were wary ahead of the release on Friday of the monthly US jobs report for September, with concerns increasing that Hurricanes Katrina and Rita put more people out of work than previously thought. Economists polled by Reuters forecast that 143,000 jobs were lost in September, revising their expectations from an initial loss of 129,000 jobs.
Shares of software and semiconductor companies were the top drags on the Nasdaq, and the Philadelphia Stock Exchange semiconductor index dropped 1.7 percent. "A larger portion of the growth for the chip sector has come from consumer electronics in the last few years." Needham & Co analyst Charlie Glavin said. "The worry is that consumers may be affected by inflation and may spend less money on consumer electronics products than they have in the last several years."
Intel Corp, the world's dominant chipmaker, slipped 1.3 percent, or 31 cents, to $23.76, while Dell, the world's largest personal computer maker, dropped 2.8 percent, or 92 cents, to close at $31.67 on Nasdaq.
In the biotech sector, Amgen Inc shares fell 2.6 percent to $75.96 on Nasdaq amid concerns about the No 1 biotechnology company's upcoming quarterly earnings report and overall weakness in the sector.
Energy stocks gave up almost all of their gains from a post-Hurricane Katrina rally over the last week. The American Stock Exchange oil index fell 2.2 percent.