* Wall St indices end 1 percent lower
* Dollar slips after ECB policymaker comments
* U.S. oil prices slip below $100 a barrel
(Adds U.S. closing prices)
By Michael Connor
NEW YORK, April 7 Wall Street stocks slumped on
Monday, extending a broad retreat in global equities markets
from a six-year high touched last week, while U.S. Treasuries'
yields moved lower.
The dollar fell against major currencies as comments by
European Central Bank policymakers curbed expectations of more
euro zone economic stimulus and boosted the euro against the
On Wall Street, the biggest decliners were Internet stocks.
The Nasdaq had its worst three-day decline since November 2011,
while the three-day decline for the S&P 500 was its steepest
since late January.
The Dow Jones industrial average fell 166.84 points,
or 1.02 percent, to 16,245.87, the S&P 500 lost 20.05
points or 1.08 percent, to 1,845.04 and the Nasdaq Composite
dropped 47.973 points or 1.16 percent, to 4,079.753.
Some equities investors, including those rotating into
defensive names to protect against further losses, worried that
the declines may run on.
"The big concern is the overall underlying weakness in so
many different stocks," said Ryan Detrick, senior technical
strategist at Schaeffer's Investment Research in Cincinnati,
Ohio. "The picture isn't nearly as pretty when you look under
the hood, and you see various sectors have clearly broken down,
and now it's starting to pull down on the whole entire stock
Pfizer Inc, down 3 percent at $31.20, pressured the
Dow and S&P 500. Pfizer's experimental breast cancer drug nearly
doubled the time patients lived without their disease getting
worse in a clinical trial. But overall survival was not shown to
be statistically significant, researchers said.
Earlier in the global trading day, Japan's Nikkei
fell 1.7 percent, while the FTSEurofirst 300 index of
top European shares gave up 1.2 percent at 1,336.11, down from a
5-1/2-year high on Friday.
Britain's top equity index, the blue-chip FTSE 100 index
, had its biggest one-day decline in a month, retreating
from a three-week high as a drop by house builders weighed on
The MSCI world equity index was down 0.87
World equity markets had three straight weeks of gains as
easing tensions in the Crimea region of Ukraine encouraged
investors to add risks.
"Markets are overbought over the short term. We have seen a
decent run after the Crimean situation cool down a little bit
and now it's quite natural to see a breather from that level,"
said Gerhard Schwarz, head of equity strategy at Baader Bank.
Wall Street's woes helped lift U.S. Treasuries prices,
extending gains from last week as traders reduced bets the
Federal Reserve might raise interest rates in the first half of
Benchmark 10-year Treasuries were up 9/32 in
price to yield 2.692 percent, down 3 basis points from late on
Friday, while the five-year note was 5/32 higher,
yielding 1.668 percent, down nearly 4 basis points from Friday.
The 30-year bond rose 19/32 for a yield of 3.553
percent, down 3 basis points from late on Friday.
Treasuries have strengthened in advance of the sale this
week of $64 billion in coupon-bearing securities, which
typically causes bond prices to fall as investors make room for
"The driving factors this week are supply and whether the
stock market falls off the cliff," said Thomas Roth, executive
director of U.S. government trading of Mitsubishi UFJ Securities
in New York
The dollar lost 0.25 percent against a basket of six major
currencies. The euro rose 0.3 percent to $1.3742.
Comments from ECB policymakers Ewald Nowotny and Yves Mersch
on Monday suggested more monetary easing from the central bank
was not imminent, which lifted the euro against the dollar.
Nowotny said there was no need to act immediately to counter
euro zone disinflation, while Mersch said that while the central
bank was drawing up plans for large-scale asset purchases, it
remained some way off.
U.S. oil futures dipped below $100, falling more than a
dollar a barrel after stock markets tumbled, with Brent crude
oil prices losing even more on the prospect of additional
supplies from Libya.
Gold also fell, with some investors taking profits after a
run-up of 1 percent on Friday credited to a short-covering rally
by investors who had worried U.S. jobs data would top forecasts.
Spot gold was down 0.4 percent at $1,298.70 an ounce in
late New York trading.
(Reporting by Michael Connor; Additional reporting by Sam
Forgione, Richard Leong and Chuck Mikolacjzak; Editing by Dan