Stocks fall again; Dow below 11,000

Stocks dropped Wednesday, extending investors’ losses for the third straight session and pushing the Dow Jones industrial average below 11,000 for the first time since March 9.

The Dow has lost more than 316 points this week; the selloff has also wiped out the Nasdaq composite index’s gains for the year and put the Standard & Poor’s 500 index less than 8 points away from its Dec. 31 close.

With little economic data or corporate news to move stocks, traders were left to decide whether the week’s tumble was a buying opportunity or a harbinger of worse days ahead. Stocks spent most the day higher, but the advance-decline line was narrow and the market turned negative in late afternoon.

Volume was light, as it has been all week, which some investors say is a sign of more losses to come.

“When we have big down days on big volume, that’s a sign of capitulation,” said Chris Johnson, manager of quantitative analysis at Schaeffer’s Investment Research in Cincinnati. “Monday and Tuesday, we saw selling, but it wasn’t the type of volume we like to see for short term-buying opportunities…. All the sellers aren’t out of this market yet.”

The Dow Jones industrial average fell 71.24, or 0.65 percent, to 10,930.90.

Broader stock indicators also fell. The Standard & Poor’s 500 index fell 7.70, or 0.61 percent, to 1,256.15, and the Nasdaq composite index fell 10.98, or 0.51 percent, to 2,151.80.

Declining issues led advancers by roughly 9 to 7 on the New York Stock Exchange.

European markets closed higher after their Tuesday swoon, but Asian stocks continued to tremble. The Shanghai Composite Index dropped 5.36 percent, its biggest fall in more than four years, on fears that new share issues may outstrip demand. Japan’s Nikkei stock average fell to its lowest close in six months on concerns over U.S. interest rates and the arrest this week of a high-profile fund manager.

Treasury bonds fell, with the yield on the 10-year Treasury note rising to 5.02 percent from 5.01 percent late Tuesday. The U.S. dollar was up against other major currencies.

Oil prices fell substantially, giving the market its early-session boost. A barrel of light crude settled at $70.82, down $1.68, on the New York Mercantile Exchange.

Volume on the New York Stock Exchange was 2.68 billion, down from 2.75 billion the previous session.

The Russell 2000 index of smaller companies was down 4.18 points, or 0.59 percent, to 706.78.

Overseas, Japan’s Nikkei stock average fell 1.88 percent. Britain’s FTSE 100 rose 0.64 percent, Germany’s DAX index gained 0.75 percent, and France’s CAC-40 gained 0.56 percent.