Wall Street ends 2009 with sharp fall

Wall Street ends 2009 with sharp fall

·Wall Street fell sharply at last minutes on final day of the year.
·The encouraging job data showed the economy was heading to the right direction
·But the data also spurred concerns for a sooner rate hike.

Traders work on the trading floor of the New York Stock Exchange in New York, the United States, Dec. 31, 2009.

NEW YORK, Dec. 31 -- Wall Street fell sharply at last minutes on final day of the year as encouraging job data showed the economy was heading to the right direction but also spurred concerns for a sooner rate hike.

Major averages opened slightly higher Thursday, drawing support from a report showing weekly jobless claims unexpectedly fell to their lowest level in 18 months.

The Labor Department said before the bell that the number of newly laid-off workers filing claims for unemployment benefits in the United States fell by 22,000 to a seasonally adjusted 432,000 in the week ended Dec. 26, the lowest level since July 2008, while economists were expecting for a rise.

New jobless claims have dropped steadily in recent months, raising hopes that U.S. labor market was healing, which is vital for a sustained recovery. However, it also added to evidence the economic is strengthening enough to allow the Federal Reserve to withdraw more stimulus programs.

With the New Year just around the corner, trading was extremely light during the session, which exacerbated Thursday's results.

Traders work on the trading floor of the New York Stock Exchange in New York, the United States, Dec. 31, 2009.

The Dow Jones Industrial Average fell 120.46, or 1.14 percent, to 10,428.05. Broader indexes also ended in negative territory. The Standard & Poor's 500 index lost 11.32, or 1.00 percent, to 1,115.10 and the Nasdaq dropped 22.13, or 0.97 percent, to 2,269.15.

Many investors believe that the market has seen the best of its gains for a while, so those who remain in the market were wrapping up the stunning comeback year by moving money out of some stocks in the final session.

However, U.S. stocks still managed their best year since 2003 as they recovered from the financial crisis and recession.

The Dow gained 18.8 percent for the year. The broader S&P, which is considered to be the best barometer of the market, rose 23.5 percent, and the technology-heavy Nasdaq ended the year with a gain of 43.9 percent.
(Shen Hong)