The Dow Jones industrial average .DJI dropped 129.91points, or 1.54 percent, to 8,292.13. The Standard & Poor’s500 Index .SPX fell 15.14 points, or 1.68 percent, to888.33. The Nasdaq Composite Index .IXIC lost 32.59 points,or 1.89 percent, to 1,695.25 Elsewhere, U.S. Treasuries plunged after the governmentsaid it would sell a massive amount of new debt next week,while earlier in the day, the U.S. dollar fell to its lowestlevel this year against a basket of currencies Investors also beat up technology shares. Apple Inc(AAPL.O) was the Nasdaq’s top drag, down 1.3 percent at$124.18.
Tech companies’ fortunes are closely linked to agrowing economy U.S. government data showed ongoing claims rose to a freshrecord as the recession battered employment, but the number ofworkers filing new claims for jobless benefits declined 12,000last week. [ID:nN21222195] The Philadelphia Fed’s survey of manufacturing conditionsfor the U.S. mid-Atlantic region contracted in May for theeighth straight month, but the deterioration improved slightlyfrom April. [ID:nN21531804] “This market really has jumped on the basis that possibly the recession could end sometime later this year or earlynext year,” said Peter Lewis, fund manager at Murphy CapitalManagement, in Gladstone, New Jersey.
“But we have to strip away the fact and realize thesereports are still bad, and by no means is this market ready totake off.” The economic data came one day after the U.S. FederalReserve offered a more pessimistic view for economic recovery,deflating some of the optimism that had underpinned the stockmarket’s recent rally from 12-year lows in early March. The S&P rallied 37.4 percent from its bear market closinglow in early March to a peak on May 8, but it has now retracedsome of those gains amid concerns about the economy and aseries of large secondary stock offerings from banks Theindex is now up 31 percent from its low set on March 9. Trading was moderate on the New York Stock Exchange, withabout 1.44 billion shares changing hands, below last year’sestimated daily average of 1.49 billion, while on Nasdaq,about 2.25 billion shares traded, below last year’s dailyaverage of 2.28 billion. Declining stocks outnumbered advancing ones on the NYSE bymore than 2 to 1, while on the Nasdaq, almost three stocksfell for every one that rose. (Reporting by Edward Krudy; Editing by Jan Paschal) Stocks Global Markets Funds News ETFs News.
