US stocks fell for a sixth session on Wednesday, led by the Nasdaq's drop of more than 2 percent as profit forecasts from Apple Inc and Motorola fanned worries about a recession and the outlook for tech. For the second day, the Nasdaq crossed the threshold that signals a bear market.
By mid-afternoon, though, all three major indexes had sharply pared some of their earlier losses, with the financial sector providing a bright spot. The S&P financial index was up 3.2 percent. Energy stocks were among top decliners, including Exxon Mobil Corp, down 3.5 percent at $79.58. Standard & Poors Equity Research said it had cut its energy sector outlook. The S&P energy sector index was down 4 percent.
After Tuesday's closing bell, Apple forecast a quarterly profit below analysts' expectations and reported disappointing holiday-season iPod shipments. Apple's stock sank 15.3 percent to $131.80 on the Nasdaq.
The Dow Jones industrial average was down 77.22 points, or 0.65 percent, at 11,893.97. The Standard & Poor's 500 Index was down 12.08 points, or 0.92 percent, at 1,298.42. The Nasdaq Composite Index was down 49.94 points, or 2.18 percent, at 2,242.33. Earlier, the Dow and S&P were down more than 2 percent each, while the Nasdaq had fallen more than 3 percent.