STOCKS on Wall Street ended sharply lower together with bond prices after deteriorating budget negotiations in Washington erased early gains. The Dow Jones average of 30 industrial stocks was down 20.23 points to 5173.84 at the close.

The blue chip average rose as much as 32 points in the morning, and it slumped as much as 55 points in the afternoon, prompting the New York Stock Exchange to curb computer program trading, before recouping more than half the day's losses.

The market rout was worsened by a continuing sell off of technology shares. Broad market indexes, where tech shares are heavily represented, fell sharply as well.

Traders also said computer trading was responsible for a large portion of the afternoon's losses.

The benchmark 30 year US Treasury bond was off more than $10 per $1,000 face value late in the session, pushing its yield, which moves opposite the price, above 6 per cent.