Stocks closed lower on Thursday after weak demand at a Treasury bond auction led to concern among investors about how the U.S. government will raise the funds it needs to counter the economic downturn. The U.S. government had to pay greater interest than expected in an auction of 30-year Treasury bonds, prompting worry on Wall Street. The higher interest rates could push up costs for borrowing in areas like mortgages. Investors were also worried ahead of the official announcement of results from the government's “stress tests” of major U.S. banks and financial institutions later Thursday and the April employment report due on Friday Stocks fell almost from the start of the trading day. According to preliminary calculations, the Dow fell 102.43, or 1.2 percent, to 8,409.85. The index is down 4.2 percent for the year. The S&P 500 index fell 12.14, or 1.3 percent, to 907.39, and the Nasdaq composite index fell 42.86, or 2.4 percent, to 1,716.24 The New York Stock Exchange composite fell 90.46 to close at 5,800.09, and the American Stock Exchange composite ended down by 0.26 at 1,468.12. The Russell 2000 also closed down lower, falling 12.17 to 492.94. The price of a barrel of light, sweet crude oil for June delivery rose 37 cents to $56.30.
