US stocks deepened the week's sharp decline yesterday, with the latest selling spree set off by more bad news from technology companies and waning hopes of a big Federal Reserve interest-rate cut after unexpectedly strong consumer sentiment data.

US consumer sentiment edged up unexpectedly in March, after three months of sharp declines. The data reined in market hopes for a steep 75-basis-point cut in interest rates by the Federal Reserve at its policy-setting meeting on Tuesday.

The Dow Jones industrial average closed at a one-year low, down 207.87 points, at 9,823.41, while the Nasdaq Composite Index fell 49.65 points, to 1,891.06. For the composite, it was the lowest finish in 28 months. The benchmark Standard & Poor's 500-stock index closed at a 27-month low, down 23.19 points, or nearly 2 per cent, at 1,150.37.