Tech, commods lead Wall Street's broad decline

By Rodrigo Campos

NEW YORK (Reuters) - Technology and basic materials shares led Wall Street's broad decline on Thursday, as bearish analyst comments on the semiconductor sector and a stronger U.S. dollar dented recent gains.

Bank of America-Merrill Lynch cut its 2010 growth outlook for the semiconductor industry, and downgraded 10 stocks, including Intel Corp, Texas Instruments Inc and Marvell Technology Corp.

Dow component Intel fell 5.5 percent to $19.02, and the Philadelphia Semiconductor index dropped 4 percent.

Energy shares slid 2.1 percent as U.S. crude futures fell on the stronger U.S. dollar and doubts about the pace of demand recovery in the United States. The rising greenback hurt other commodities, and the S&P materials sector tumbled 2.5 percent.

The Dow Jones industrial average fell 136.19 points, or 1.31 percent, to 10,290.12. The Standard & Poor's 500 Index dropped 17.87 points, or 1.61 percent, to 1,091.93. The Nasdaq Composite Index lost 43.09 points, or 1.96 percent, to 2,150.05.

"Today's move does have to do with recent gains and profit taking," said Ralph Fogel, investment strategist at Fogel Neale Partners in New York. "There is some sort of consolidation, even though there is an uptrend that is still on."

Through Wednesday's close, the S&P 500 index was up 64 percent from its March lows and 7.1 percent so far this month.

Health insurance stocks fell a day after U.S. Senate Majority Leader Harry Reid released an $849 billion healthcare reform bill that analysts said would extend coverage to tens of millions of the uninsured.