On Wednesday, the 30-stock Dow Jones industrial average finished lower by 184.22 points, or 2.17%, at 8,284.89. The broader S&P 500 index fell 24.43 points, or 2.69%, to 883.92. The tech-heavy Nasdaq composite index shed 51.73 points, or 3.02%, to 1,664.19. On the New York Stock Exchange, 27 stocks were lower in price for every three that advanced. Nasdaq breadth was 23-4 negative.

Treasuries were higher. The dollar index was higher. Gold futures were up. Oil futures were lower after the release of weekly U.S. inventory data.

The market appeared poised for a correction after a nine-week rally.

Sentiment Wednesday was hurt by news the European Union fined Intel (INTC) $1.45 billion on an anti-competition charge.

Traders also eyed a decline in April retail sales and larger than expected increases in import and export prices. A report showing a 1.0% decline in March business inventories was close to market expectations. The data dampened investor optimism the U.S. recession was leveling off.

Disappointing earnings news from Macy's (M), BMC Software (BMC), and ING Groep (ING), also contributed to the Street's dark mood Wednesday.

Investors were also pondering press reports that the Obama administration is seeking to change executive pay in the financial services industry.

The European Commission fined Intel a record 1.06 billion [US$1.45 billion] for abusing its dominance in the market for computer chips to exclude Advanced Micro Devices (AMD), which is Intel's only serious rival. According to a New York Times report, EU competition commissioner Neelie Kroes said the penalty against Intel, the world's largest chip maker, was justified because the company had skewed competition and robbed consumers of choice. Kroes said Intel "used illegal anticompetitive practices to exclude its only competitor and reduce consumers' choice and the whole story is about consumers." She also ordered Intel to cease offering rebates to computer makers that had helped it maintain a share of about 80% of the market for microchip sales and blocked AMD from increasing its share beyond about 20% of that market.

Intel had no immediate comment, but antitrust experts have said Intel would almost certainly appeal both the fine and orders to change its business practices to the European Court of First Instance, which is the trade bloc's second-highest tribunal.

Shares of Intel were flat Wednesday morning, while AMD shares moved higher.