Financial stocks lost ground Thursday as well, with investors uncertain about what is in store for the economy and the troubled financial sector.
But the sense of panic that emanated from the near-collapse of Bear Stearns Cos. at the start of last week has lessened, observers say. The Federal Reserve on Thursday afternoon auctioned off $75 billion in credit to investment banks, whose demand was solid but not at the desperate levels some investors had feared.
The Dow fell 120.40, or 0.97 percent, to 12,302.46.
The Standard %26 Poor’s 500 index declined 15.37, or 1.15 percent, to 1,325.76, and the technology-heavy Nasdaq composite index fell 43.53, or 1.87 percent, to 2,280.83.
Declining issues outpaced advancers by about 5 to 3 on the New York Stock Exchange. Consolidated volume came to 3.90 billion shares, down from 3.99 billion on Wednesday.
The Russell 2000 index of smaller companies fell 9.72 to 692.39.
Bond prices also fell. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.52 percent from 3.46 percent late Wednesday.
Tags: Bank, bear stearns, bear stearns cos, benchmark, decline, federal reserve, Investment Bank, Investment Banks, new york stock, new york stock exchange, nse, nvestment Banks, stock exchange, treasury, york stock exchange