US stocks follow global sell-off on Greek debt worries

Jan 28, 2010, 21:58 GMT

New York - US stocks fell Thursday, continuing a global sell-off amid renewed fears that Greece will not be able to pay off its debts.

French newspaper Le Monde reported that the European Union was considering financial aid for Greece, but the report was denied by Germany and France. European stocks fell earlier in the day.

With one trading day left in January, the decline puts the Dow Jones Industrial Average on pace for its worst monthly performance in nearly a year. The morning sell-off was fed by worse than expected figures on weekly jobless claims and durable goods orders.

Markets rallied slightly in the afternoon in anticipation of the Senate confirming Federal Reserve Chairman Ben Bernanke for a second four-year term at the helm of the US central bank.

The Senate's 70-30 vote came soon after markets closed, ending investors' jitters over a popular backlash against Bernanke's Fed and government bail-outs that could have derailed his nomination.

Technology stocks were hit after chipmaker Qualcomm reduced its sales forecast. The company's chief executive Paul Jacobs blamed the numbers on a 'subdued' economic recovery in the United States.

The blue-chip Dow fell 115.7 points, or 1.13 per cent, to 10,120.46. The broader Standard & Poor's 500 Index lost 12.97 points, or 1.18 per cent, to 1,084.53. The technology-heavy Nasdaq Composite Index plunged 42.41 points, or 1.91 per cent, to 2,179.

The US currency climbed against the euro to 71.58 euro cents from 71.3 euro cents on Wednesday. But the dollar edged lower against the Japanese currency to 89.91 yen from 89.95 yen a day earlier.