US stocks retreated near the end of the trading day today as investors wrestled with the reality that the economy is still far from a recovery.
The pessimism that has dominated the markets for months stifled some tentative bargain hunting and in the process unraveled several attempts at a rally.
The Dow fell 37.27, or 0.6 per cent, to 6,726.02. The index is now down more than 52 per cent from its record of 14,164.53 set in October 2007.
The S&P 500 index slid 4.49, or 0.6 per cent, to 696.33, and the Nasdaq composite index fell 1.84, or 0.1 per cent, to 1,321.01.
Investors are still worried the US government's rescue plans won't succeed. On Tuesday, the government injected US$30 billion to troubled insurer American International Group, its fourth attempt to stabilise the company since September.
President Barack Obama likened the stock market to the daily tracking polls used during campaigns. He said tracking Wall Street's "fits and starts" too closely could lead to bad long-term policy.
-AP
<i>US stocks:</i> Wall St rebounds, then retreats
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