A LATE sell off turned a mixed day on Wall Street into one in which prices closed lower yesterday. The Dow Jones industrial average dropped 47.33 points to close at 7,020.13.
Analysts said computerised selling contributed to the sharpness of the fall, which was compounded by investor concern that a correction may be in the offing after the inflated levels of recent months.
The US Labour Department reported that consumer prices rose slightly less than expected in January, up 0.1 per cent.
The bond market initially rose on the news, but the gains did not hold. Prices fell, sending interest rate yields higher. Since bond yields have a big influence on corporate borrowing costs, any fears of higher interest rates can hurt stock prices.
The Standard and Poor's 500 stock index was down 3.82 to 812.47.
The Nasdaq composite was down 0.92 to 1,364.87. The American Stock Exchange market value index held onto its earlier gains, closing at 599.15, up 1.05.
