GLOBAL MARKETS-Stocks slip on tech warnings, euro down

(Updates with U.S. stocks, fresh prices and quotes, changes byline, dateline, previous LONDON)

NEW YORK, Feb 7 (Reuters) - U.S. stocks fell in choppy trading on Thursday, extending a drop in European shares after warnings from major technology companies heightened concerns a slowing U.S. economy might hurt corporate earnings globally.

The euro and sterling hit two-week lows against the dollar following interest rate decisions by their respective central banks.

The European Central Bank left interest rates unchanged, but bank President Jean-Claude Trichet later signaled looser monetary policy ahead. The Bank of England cut interest rates by one quarter of a percentage point, as expected.

A weaker-than-expected sales report from retailer Wal-Mart (WMT.N: Quote, Profile, Research) and warnings from network equipment maker Cisco Systems Inc (CSCO.O: Quote, Profile, Research) of disappointing third-quarter revenue growth pressured Wall Street. In Europe, German chip maker Infineon (IFXGn.DE: Quote, Profile, Research) warned of further losses at its phone chips unit.

"Cisco's news is what started the breakdown in technology," said Victor Pugliese, director of listed equity trading at Broadpoint Securities in San Francisco.

"In general, the market is very, very volatile ... there's a lot of uncertainty."

The Dow Jones industrial average .DJI was down 24.63 points, or 0.20 percent, at 12,175.47. The Standard & Poor's 500 Index .SPX was up 0.21 points, or 0.02 percent, at 1,326.66. The Nasdaq Composite Index .IXIC was down 3.53 points, or 0.15 percent, at 2,275.22.

An earlier recovery attempt by U.S. stocks and the looming $9 billion auction of 30-year Treasury bonds pressured U.S. government debt prices.