New York – Troubles in the technology sector pushed Wall Street’s major indexes to their lowest levels since mid-May on Wednesday, with Apple Computer Inc. and a downgrade of Intel Corp. leading the market downward.
Investors’ worries about consumer spending intensified after Apple’s lower-than-expected third-quarter revenues were announced. The market got more troubling news from Prudential’s downgrade of Intel, which said the company could face disappointing revenues and margins for as long as the next year.
The company news hit an already- bruised market, as it followed nasty declines on Wall Street last week. Investors are anxious about Federal Reserve interest-rate hikes and high energy costs, which could hang over the market for months.
“There’s been nothing to trigger the kind of sell-off we’ve seen yesterday and today,” said Brian Bush, director of equity research at Stephens Inc. “I don’t see a logical explanation, other than just pure nervous speculation and fear.”
Stocks had opened higher after Federal Reserve Chairman Alan Greenspan said in a speech that the economy was weathering the recent jump in energy prices without major disruptions.
The Dow Jones industrial average fell 36.26, or 0.35 percent, to 10,216.91.
Broader stock indicators were also lower. The Standard & Poor’s 500 index fell 7.19, or 0.61 percent, to 1,177.68, while the technology-focused Nasdaq composite index fell 23.62, or 1.15 percent, to 2,037.47.
The Bloomberg Colorado Index, a price- weighted list of companies based in the state, lost 5.59, or 1.9 percent, to 296.99, the lowest since July 7.
Bonds fell for a second session, with the yield on the 10-year Treasury note rising to 4.45 percent from 4.39 percent late Tuesday.
The dollar was up against other major currencies, and gold prices fell after hitting an 18-year high in morning trading.
Climbing oil prices exacerbated worries about energy costs. A barrel of light crude climbed 59 cents to settle at $64.12 on the New York Mercantile Exchange.
