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Weak demand seen in Treasury auction

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Disney ( DIS ) shares lower

(Updates with closing prices at 4 p.m. ET)

By Caroline Valetkevitch

NEW YORK, Aug 7 (Reuters) -

U.S. stocks ended lower on Wednesday as technology shares

declined, with investor jitters stoked by weak demand in a

10-year Treasury auction.

Indexes started the day higher and began to lose steam

in afternoon trading. With investors still nervous after a

recent steep selloff in global stocks, equities pared gains

further after

the Treasury auction

. All three indexes then went red, and losses steepened just

before the close.

"There's just a lot to worry about over the next eight

weeks or so, so I'm expecting more volatility. I wouldn't be

surprised if after a few days of rally you have another small

selloff," said Peter Tuz, president of Chase Investment Counsel

in Charlottesville, Virginia.

Investors have been worried about a possible U.S.

recession and weaker-than-expected forecasts from U.S.

companies, among other factors.

According to preliminary data, the S&P 500 lost 40.36

points, or 0.77%, to end at 5,199.67 points, while the Nasdaq

Composite lost 167.99 points, or 1.03%, to 16,198.86.

The Dow Jones Industrial Average fell 222.06 points, or

0.57%, to 38,775.60.

Stocks got early support when Bank of Japan (BOJ) Deputy

Governor Shinichi Uchida said the central bank would not raise

rates when financial markets are unstable, pushing the yen

lower and boosting market sentiment.

The BOJ's surprise rate hike on July 31 to a level

unseen in 15 years had sparked a global stocks rout as investors

unwound their sharp yen carry trade positions following a surge

in the low-yielding currency, widely used for acquiring

high-yielding assets.

Shares of Walt Disney ( DIS ) fell as it predicted a

"moderation in demand" at its theme park business in the coming

quarters.

Super Micro Computer ( SMCI ) shares dropped after it

reported quarterly adjusted gross margins below estimates. Rival

Dell Technologies ( DELL ) dropped 4.9%.

Markets await more commentary on monetary policy from U.S.

central bank officials next week, in the run-up to the Jackson

Hole, Wyoming, event where Fed Chair Jerome Powell is scheduled

to speak.

(Additional reporting by Shubham Batra and Shashwat Chauhan in

Bengaluru; Editing by Sriraj Kalluvila, Shinjini Ganguli and

David Gregorio)