Wall Street extended its losses today despite a drop in durable goods orders that fed hopes that the US Federal Reserve would stop raising interest rates.
Investors remain uneasy about buying stocks after a late-day sell-off left the major indexes moderately lower yesterday. A rebound in oil and gold prices initially lifted the market, but renewed inflation jitters set off a new wave of selling.
The US Commerce Department said orders for high value manufacturer items fell by 4.8 per cent in April. While the decline supports the belief that the Fed has raised interest rates to such a degree as to slow a robust economy, the lingering uncertainty continues to weigh on Wall Street's mood.
The nervousness over inflation and interest rates also overshadowed a broker's upgrade of General Motors Corp., as well as lower oil and gold prices.
In the first hour of trading today, the Dow Jones industrial average dropped 18.49, or 0.17 percent, to 11,709.86.
Broader stock indicators were narrowly mixed. The Standard & Poor's 500 index was down 3.05, or 0.24 percent, at 1,253.53, and the Nasdaq composite index rose 0.02 to 2,158.78.
The downbeat economic data gave the bond market confidence that the Fed won't keep boosting interest rates. The yield on the 10-year Treasury note fell to 5 percent from 5.03 percent late Tuesday.