US stocks fall

Interest rate worries sent share prices lower on Wall Street today after strong consumer confidence and home sales data signalled that the US economy is holding up better than expected and suggested that the Federal Reserve has room for more rate increases.

Crude oil prices fell following an announcement by President George Bush that he would waive regional clean-air specifications for summer-grade petrol to attract more imports of fuel to the US.

Bush also said he would halt deposits of oil to the US’s strategic petroleum reserve until Autumn, but analysts said the measure would have little impact on crude prices and certainly not help make petrol any cheaper.

The price for a barrel of light crude slipped 45 cents to close at $72.88 on the New York Mercantile Exchange, but petrol prices eased just 4 cents a gallon.

The Dow Jones industrial average dropped 53.07, or 0.5%, to 11,283.25.

Broader stock indicators also fell. The Standard & Poor’s 500 index slipped 6.37, or 0.5%, to 1,301.74, while the Nasdaq composite index fell 3.08, or 0.1%, to 2,330.30.