U.S. stocks fall after Greenspan remarks

May 23, 2007 at 10:56 PM
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NEW YORK, May 23 (UPI) -- U.S. stock indexes closed down Wednesday after former U.S. Federal Reserve Chairman Alan Greenspan said he fears a "dramatic contraction" in Chinese stocks.

The Chinese stock boom "is clearly unsustainable," Greenspan told a Madrid conference by satellite. "There's going to be a dramatic contraction at some point."

The Dow Jones industrial average fell 14.30 points, or 0.11 percent, to 13,525.65, after rising above 13,600 earlier. The broader Standard & Poor's 500 index lost 1.84 points, or 0.12 percent, to 1,522.28 -- after earlier topping its 7-year-old record-high close of 1,527.46.

On the New York Stock Exchange, 1,367 stocks gained and 1,932 declined, on volume of 3.2 billion shares.

The technology-heavy Nasdaq Composite Index slipped 10.97 points, or 0.42 percent, to 2,577.05.

In London, the FTSE 100 index closed up 9.80, or 0.15 percent, at 6,616.40.

Japan's Nikkei 225 index -- which closed up 25.07 points, or 0.14 percent, at 17,705.12 Wednesday -- lost 0.6 percent in mid-morning trading Thursday.

The 10-year U.S. Treasury note fell 7/32 Wednesday, yielding 4.863 percent, while the 30-year bond was down 13/32, yielding 5.015 percent.

The U.S. dollar rose to 121.61 yen from 121.58 yen in New York late Tuesday. The euro, in U.S. dollars, moved to $1.3461 from $1.3450.

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