(By Salman - iStockAnalyst Writer)US stocks finished with losses on Wednesday as a steep drop in prices of US Treasury securities sparked economic fears.
The Dow Jones Industrial Average tumbled 173.47 points or 2.05% to finish at 8,300.02. The S&P 500 lost 17.27 points or 1.90% to end at 893.06. The Nasdaq Composite slumped 19.35 points or 1.11% to 1,731.08.
Bond prices fell in the afternoon trade and yield curve, namely the difference in yields between 2-year and 10-year Treasury notes widened to a record 2.75% on concerns that rising U.S. debt issuance will negatively impact the Federal Reserve's quantitative easing program in its effort to keep borrowing costs low.
General Motors (NYSE:
GM) sank 29 cents 20.14% to $1.15. The company inched closer to bankruptcy as only a small fraction of bond holders took part in the company's $27 billion bond swap on Tuesday.
GM offered a 10 percent equity stake of the reorganized GM in return for unsecured debt.
Shares of financials retreated. J.P Morgan (NYSE:
JPM) plunged $1.88 or 5.15% to $34.66. American Express (NYSE:
AXP) plummeted $1.07 or 4.35% to $23.50. Citigroup (NYSE:
C) fell 7 cents or 1.86% to $3.70. Wells Fargo & Co. (NYSE:
WFC) tumbled $1.57 or 6.12% to $24.08. Bank of America (NYSE:
BAC) dropped 7 cents or 0.64% to $10.91.
Technology shares finished with losses. IBM (NYSE:
IBM) subtracted $2.09 or 1.99% to $102.93. Shares of software giant Microsoft Corp. (NASDAQ:
MSFT) decreased 21 cents or 1.03% to $20.13.
Alcoa Inc. (NYSE:
AA) slipped 22 cents or 2.37% to $9.05.
Energy stocks finished down. Exxon Mobil (NYSE:
XOM) lost $1.51 or 2.16% to $68.30. Chevron Corp. (NYSE:
CVX) retreated $1.09 or 1.66% to $64.57.
General Electric Co. (NYSE:
GE) lost 42 cents or 3.14% to $12.97.
Shares of Monsanto Co.
