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Overnight Markets: US stocks down after World Bank cuts forecast

Overnight Markets: US stocks down after World Bank cuts forecast

Wall Street declined on Wednesday, with the Dow Jones snapping a four-day string of record closing highs, after the World Bank's reduction of its global growth forecast.

The Dow Jones industrial average fell 102 points or 0.60%, to 16,844. The S&P 500 slid seven points or 0.35%, to 1,944. The Nasdaq Composite dropped six points or 0.14%, to 4,332.

The World Bank's lower growth forecast provided investors with a reason to unload some stocks. Late Tuesday, the World Bank cut its global economic growth forecast for 2014 to 2.8% from 3.2% because of a harsh US winter and the impact of the Ukraine crisis.

The biggest drag on the S&P 500 was Bank of America Corp (BAC.N), down 2.1%. The bank has reached an impasse in negotiating a multibillion-dollar settlement with the US Department of Justice related to the bank's mortgage investments.

Boeing slid 2.3% for the biggest drop in the Dow after US House Majority Leader Eric Cantor’s defeat in a primary election threatened congressional reauthorisation of low-cost lending that benefits the company..

Micron Technology Inc (MU.O) rose 5% a day after Credit Suisse raised its price target on the memory chipmaker's stock to $50 from $30.

Orexigen Therapeutics Inc (OREX.O) shares sank 14.7% after the US Food and Drug Administration delayed a decision on the marketing application for its obesity drug by three months.

J Sainsbury Plc (SBRY) rose 1% after saying sales growth will resume this year. Anadarko Petroleum Corp. rose to a record amid speculation of a takeover. H&R Block Inc. added 4.6% after reporting sales that topped analysts’ forecasts.

Hilton Worldwide Holdings Inc. slid 2.7% after registering to sell 90 million shares held by Blackstone Group LP.

In Asia, shares fell on Thursday in morning trade as investors weighed valuations after US equities declined.

The MSCI Asia Pacific Index dropped 0.6% to 144 as of 9:47 a.m. in Hong Kong. Japan’s Topix index lost 0.8%, heading for its biggest decline in almost a month. South Korea’s Kospi index declined 0.2% after the nation’s central bank left its key interest rate unchanged.

Taiwan’s Taiex index retreated 0.4% and Singapore’s Straits Times Index was little changed. Hong Kong’s Hang Seng Index slipped 0.5%, while China’s Shanghai Composite Index lost 0.2%.

Australia’s S&P/ASX 200 Index dropped 0.5% after employment unexpectedly declined in May.

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