U.S. stocks dropped on Wednesday, with the Nasdaq Composite Index falling sharply after Apple Computer Inc. AAPL.O posted disappointing revenue, and heightened fears of rising interest rates hitting investor sentiment, Reuters reported. It was the lowest close for the three major indexes in about 5 months. Apple fell 4.5 percent to $49.25 and was the biggest drag on the Nasdaq, a day after reporting fiscal fourth-quarter revenue from its market-leading iPod digital music player below Wall Street estimates. Other technology companies weighing on the market included Advanced Micro Devices Inc., whose shares slid nearly 10 percent to $21 on the New York Stock Exchange amid analysts' concerns that the company's strong revenue growth wasn't producing wider profit margins. The Dow Jones industrial average was down 36.26 points, or 0.35 percent, to end at 10,216.91. The Standard & Poor's 500 Index was down 7.19 points, or 0.61 percent, to finish at 1,177.68. The technology-laced Nasdaq Composite Index was down 23.62 points, or 1.15 percent, to close at 2,037.47. "It's the kind of market now where (investors) have to get out -- to lighten up," said Elliot Spar, market strategist with Ryan Beck & Co. "Interest rates are making people do that, and fear of a slowing economy and higher inflation. If that's the fear, then prices come down." --More 2349 Local Time 2049 GMT
