Wall Street: Wednesday close

NEWS that authorities are investigating the accounting of

The Dow Jones Industrial Average slipped 58.54 points or 0.6% to 9923.04. The Nasdaq Index fell 27.78 points or 1.7% to 1624.39 in the third straight decline for major market indices.

The latest slide has been attributed to hints that US consumers might cut spending plans, endangering the fragile recovery and postponing a revival in company profits. Markets also remain jittery about terrorism, amid numerous warnings from the Bush Administration. But questions about the integrity of company accounts, a market-moving factor since October, played a role in Wednesday's sell-off.

Halliburton, the world's biggest provider of services to the oil and gas drilling industry, tumbled as much as 7%before ending the day down 63 cents or 3.3% at $18.72. It said the Securities and Exchange Commission had launched a preliminary inquiry into how it accounted for cost overruns on construction jobs. Sources said the focus was a change in accounting methods instituted under Cheney four years ago. Halliburton has a market value of nearly $8bn (£5.7bn).

The disclosure was just the latest in a series of questions raised about energy and energy trading companies in the aftermath of Enron's collapse. El Paso, America's biggest natural gas pipeline company, plunged $8.26 or 28% to $27.01 after it slashed its profit forecasts and said it halve its energy trading staff. Rival Williams dipped $1.64 or 10% to $15.47 after Standard & Poor's cut its debt ratings.

Techs were pressured in part by fibre optic equipment maker Novellus, which declined to offer guidance beyond the second quarter. Novellus dropped $3.37 or 7% to $43.40. Tech equipment maker JDS Uniphase fell 22 cents or 5.5% to $3.77 on a rating reduction by CSFB.

Mobile groups Ericsson, down seven cents or 3% to $2.31, and Nokia, off 54 cents or 3.8% to $13.75, were weighed down by negative analyst comments. Network switch maker Cisco Systems shed 75 cents or 4.5% to $15.65. Telecoms equipment maker Nortel Networks gave up 17 cents or 7% to $2.35 after it said it would cut another 3,500 jobs.

Semiconductor giant Intel remained under pressure, losing $1.08 or 3.8% to $27.27 as investors worried about a much-anticipated rebound in demand for chips. Microsoft shed 27 cents or 0.5% to $52.05.

A warning from Goldman Sachs that gold shares may have run up too far too fast trimmed Newmont Mining. It fell 71 cents or 2.4% to 31.24 even while bullion futures traded above $328 an ounce, near a five-year high.

Among Dow components, AT&T dipped 40 cents or 3.2% to $12.01 on a debt downgrade, Citigroup fell 48 cents or 1% to $43.50 and Wal-Mart surrendered 26 cents or 0.5% to $54.53.