NEW YORK: US markets fell Wednesday after pushing higher for five days, with traders uninspired by troubled Italy's garnering lower rates in its newest bond auction amid thin trade.
At the close the Dow Jones Industrial Average was down 139.94 points (1.14 percent) at 12,151.41.
The broader S&P 500 slipped 15.79 (1.25 percent) to 1,249.64, while the Nasdaq Composite lost 35.22 (1.34 percent) to 2,589.98.
Markets got little relief from Italy's pulling off an auction Wednesday of 9.0 billion euros ($11.8 billion) in six-month bonds at low rates, with euro worries instead dominating trade.
The average rate on the debt was 3.25 percent, half the 6.50 percent paid in a similar operation in November, when worries that Italian finances might collapse filled the markets.
But news that eurozone banks deposited a record amount of overnight funds at the European Central Bank on Tuesday showed there were still deep tensions in the single-currency zone.
Also hovering in the air was the warning Tuesday by Iranian Vice President Mohammad Reza Rahimithat "not a drop of oil will pass through the Strait of Hormuz" if the West broadened sanctions against Iran over its nuclear program.
The United States warned Iran on Wednesday against any attempt to disrupt shipping.
"Interference with the transit... of vessels through the Strait of Hormuz will not be tolerated," said Pentagon press secretary George Little, adding that there had been no sign of hostile action by Iran in the area.
Most of the Dow blue chips were in the red, led by Bank of America, down 3.6 percent, and Cisco, down 2.3 percent.
Blackberry maker Research in Motion dropped 4.2 percent, while Amazon slipped 1.4 percent despite reports of solid holiday online sales.
Bond prices rose. The yield on the 10-year Treasury fell to 1.91 percent from 2.01 percent on Tuesday, while the 30-year yield was at 2.90, down from 3.04 percent.
Bond prices and yields move in opposite directions.
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