Weaker tech sector drags on Wall Street

Dow Jones: 11,613.30 (–242.12) SP 500: 1,256.88 (–24.99) Nasdaq: 2,616.82 (–50.51):US STOCKS sank yesterday, erasing the 2011 gain for the Standard and Poor's 500 Index, and treasuries rallied as Japan's nuclear crisis worsened.

The yen rose to a post-second World War high against the dollar on speculation investors will buy the currency to fund rebuilding projects.

Technology and industrial stocks led declines of at least 1.4 per cent in all 10 industry groups in the SP 500, which fell to the lowest level since December 23rd.

The Dow Jones industrial average fell 242.12 points, or 2.04 per cent, at 11,613.30.

The Standard Poor’s 500 Index slipped 24.99 points, or 1.95 per cent, at 1,256.88.

The Nasdaq Composite Index dropped 50.51 points, or 1.89 per cent, at 2,616.82.

“The selling today is exacerbated by the nuclear situation, which makes it much more difficult to assess Japan,” said Christopher Sheldon, the Boston-based director of investment strategy at BNY Mellon Wealth Management.

“Investors are selling on the appearance of a negative situation with the nuclear reactors and you can’t say it’s unfounded because we don’t know how bad this may get,” he said.

International Business Machines sank 3.8 per cent for the biggest drop in the Dow Jones Industrial Average after Sanford C Bernstein reduced the shares to “market perform” from “outperform”.

Hartford Financial Services declined 3.3 per cent. The US insurer made bullish bets on Japan earlier this year.

General Electric slumped 3.4 per cent, the second biggest fall in the Dow, as the company’s goal of broadening its $1 billion nuclear services and parts business came at risk from the potential nuclear fallout in Japan.

Cameco shed 9 per cent to $29.64 and Shaw dropped 3.8 per cent to $32.83 on volumes many times their 10-day averages.

US-listed shares of Toyota dropped 1.2 per cent to $80.41 after the automaker said it would continue to halt operations at its 12 main Japanese assembly plants.

Retailers with operations in Japan, such as Coach and Tiffany fell on speculation store closures and shortened hours will reduce sales. – (Bloomberg/Reuters)