Technology stocks rallied but failed to lift the broader market yesterday as the threat of higher interest rates kept investors on edge and alert to changes in bond market yields.

At the close of trading on Wall Street, the Dow Jones industrial average was down 75.35, or by 0.7 per cent, at 10,690.29.

Broader stock indicators were mixed. The Nasdaq composite outstripped other indexes as several technology leaders advanced on strong sales outlooks.

The Standard and Poor's 500 rose 1.56 to 1,318.89, and the Nasdaq composite index rose 31.90 to 2,506.46.

Declining issues outnumbered advancers by a 9-to-8 margin on the New York Stock Exchange, with 1,556 down, 1,389 up and 593 unchanged.