New York – Stocks finished sharply lower Wednesday as a jittery Wall Street sold off on a report showing a large drop in pending home sales and read anecdotal data from the Federal Reserve’s regional banks as offering little more assurance that an interest-rate cut is likely. The Dow Jones industrial average dropped more than 140 points.
Bond prices soared as investors again sought the safety of government debt, sending yields to multimonth lows. The yield on the 10-year Treasury note, which moves inversely to its price, fell to 4.47 percent, its lowest level since March 14 and down from 4.56 percent at Tuesday’s close.
The National Association of Realtors said pending sales of existing homes fell in July to their lowest level in nearly six years. Though the report did support the argument for a rate cut, it also worried investors who are nervous about the housing market growing so weak that it drags the economy into recession.
The Fed’s Beige Book, which describes economic conditions in regions around the country, said that while upheaval in the financial markets has made the housing slump worse, the overall economy hasn’t been widely harmed. Wall Street appeared disappointed that the Beige Book’s findings didn’t deliver a sure bet for a rate cut, which markets have been pining for.
The Dow ended down 143.39, or 1.07 percent, at 13,305.47, after having fallen as much as 200 points in the session.
Broader stock indicators also lost ground. The Standard & Poor’s 500 index fell 17.13, or 1.15 percent, to 1,472.29, and the Nasdaq composite index fell 24.29, or 0.92 percent, to 2,605.95.
