Technology shares faltered after lifting the Nasdaq market toward another record high, while financial shares led the broad market lower amid nagging worries about the global economy.

The Dow Jones industrial average dropped 42.49 points - or by 0.5 per cent - at 9,027.98, bouncing back from a 124-point deficit over the final hour of trading. Broader stock indicators also trimmed their losses near the close. Adding to the concern about whether the market recovery has been too optimistic was another warning from a major company about the continuing economic weakness in Asia.

The Standard and Poor's 500 fell 6.32 to 1,181.38, and the Nasdaq composite index fell 5.89 to 2,034.75.