US stocks dropped yesterday as investors, locking in recent gains, drove financial issues lower and as OPEC oil ministers adjourned their crucial talks on an expected increase in oil supply.

"The financials are seeing profit-taking today and that's weighing on the Dow," said Scott Bleier, chief investment strategist at Prime Charter Ltd.

The Dow Jones ended down 86.87, or 0.78 per cent, at 11,025.85. The technology-laden Nasdaq edged down 4.51, or 0.09 per cent, to 4,958.52.

Poor performance from Microsoft , a leading driver of the Nasdaq and also one of the 30 Dow stocks, weighed on the US blue chips amid concerns that federal officials do not think the company's settlement offer in its landmark antitrust case went far enough, traders said.