LEAD: N.Y. stocks tumble on rising long-term rates.
(EDS: RECASTING WITH END OF TRADING)
New York stocks plunged Wednesday on rising long-term interest rates.
The 30-issue Dow Jones Industrial Average, which gained 196.17 points Tuesday, shed 173.47 points to end at 8,300.02.
The tech-heavy Nasdaq Composite Index, a 58.42 point gainer, fell 19.35 points to 1,731.08.
Expanding U.S. budget deficits sparked worries that U.S. debt rating may be downgraded, sending the yield on the benchmark 10-year Treasury note rising to a half-year high of 3.74 percent.
The trend in the bond market spawned fears that higher borrowing costs will push down the domestic economy, touching off massive sell orders on Wall Street, market analysts said.
Traders unloaded shares of GM and affiliated parts suppliers, convinced that the automaker's bankruptcy is imminent in view of its failed attempt to reduce debt.
Earlier Wednesday, GM said it has failed to secure the consent of enough holders of GM bonds for its debt-to-equity swap plan.
GM has until next Monday to work out a viable restructuring plan or face Chapter 11 bankruptcy protection.
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|Publication:||Japan Weekly Monitor|
|Date:||Jun 1, 2009|
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