Wall Street retreats as technology stocks plunge

Dow Jones: 12,048.94 (–21.87) Nasdaq: 2,675.38 (–26.18) S&P 500: 1,279.56 (–5.38)US STOCKS fell yesterday, sending the Standard and Poor's 500 Index to the longest losing streak since February 2009, as raw material and technology shares slumped amid growing concern the economy is slowing.

Visa and MasterCard was down at least 1.5 per cent after the US Senate rejected a six-month delay of a Federal Reserve rule capping debit-card swipe fees set by Visa and MasterCard.

Ciena, a maker of network gear for the biggest US phone companies, tumbled 16 per cent after reporting a wider than estimated loss.

Gap slumped 2.4 per cent after Barclays cut its recommendation on the shares.

Almost three stocks fell for each that rose on US exchanges in New York.

The S&P retreated 0.4 per cent to 1,279.56, dropping for a sixth straight day.

The Dow Jones Industrial Average declined 21.87 points, or 0.2 per cent, to 12,048.94.

“There’s enough fear,” said Sara Zervos, the New York-based head of global debt at OppenheimerFunds.

“We’re getting into that negative side of things. This is a soft spot granted it’s been a very significant string of bad data,” he said.

Federal Reserve chairman Ben Bernanke said yesterday that the US recovery was “frustratingly slow.”

New York-listed shares of Renren fell 13.6 per cent to $10.51 and Baidu lost 3.3 per cent to $120.67.

Mortgage insurers’ shares fell after MGIC Investment reported disappointing monthly operating statistics.

Shares of MGIC Investment, the biggest mortgage insurer to Fannie Mae and Freddie Mac, fell 20.2 per cent to $5.80.

Recent data showing weakness in the economy, including a rise in the unemployment rate to 9.1 per cent in May, has increased the chances the Fed will hold the benchmark interest rate near zero into next year.

Stocks extended a worldwide slump yesterday and commodities retreated after the World Bank said global gross domestic product may expand 3.2 per cent this year, less than the 3.3 per cent forecast in January.

The Fed said the economy expanded at a “steady pace” in most of the US. – (Bloomberg)