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New York: US stocks fell in choppy trading on Tuesday, led by a drop in shares of General Electric and lingering worries about the financial sector that derailed an advance spearheaded by technology companies.
Concern about whether a proposed $700 billion financial sector bailout will thaw frozen credit markets or help revive the struggling US economy also weighed on the market even as congressional debate about the plan heated up.
GE, down more than four per cent at $25, was a top drag on both the Dow and the S&P 500, after an anal-yst at Goldman Sachs cut the profit outlook on the diversified manufacturer.
While Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke urged Congress to pass the plan, some investors were sceptical it would prove a panacea for the market.
The Dow Jones industrial average was down 157.86 points, or 1.43 per cent, at 10,857.83. The Standard & Poor's 500 Index was down 19.61 points, or 1.62 per cent, at 1,187.48. The Nasdaq Composite Index was down 23.07 points, or 1.06 per cent, at 2,155.91.
The dollar climbed from a record one-day loss versus the euro, with investors encouraged by the fall in oil prices. The euro rose 0.56 per cent to $1.4701.
European shares ended sharply lower. The pan-European FTSEurofirst 300 index ended 1.5 per cent lower at a provisional 1,109.93, adding to a 2.1 per cent loss on Monday.
This followed a decline of 2.2 per cent for Asian equities excluding Japan whose markets were closed for a holiday. MSCI's world equity index shed 0.6 per cent.
Crude prices ease $3
Oil prices fell $3 on Tuesday - reversing direction after Monday's dramatic rally - as dealers focused on slowing global energy demand and doubts over a US plan to rescue the financial sector.
US crude for November dropped $3.15 to $106.22 a barrel by 1703 GMT, after rising nearly $7 on Monday. November Brent crude traded down $3.71 at $102.33. The US Commodity Futures Trading Commission said it was reviewing the price jump to ensure trading was valid.
Dealers said Monday's price surge was supported by a weak dollar plus hopes the $700 billion US bailout plan would ease the global financial crisis.
- Reuters
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