Stocks clawed back from a steep fall yesterday but still ended lower as Wall Street was dogged by bad earnings from Hewlett-Packard and lingering concern over the disputed US presidential election.

The Nasdaq composite index ended down 62.25 points, or 2.1 per cent, at 2,966.74, after sliding as much as 170 points to 2,859.39, its lowest since late October 1999. The sell-off also knocked the index below 3,000 since early November last year.

The Dow Jones Industrial average also recovered partially, ending with a 85.70-point loss at 10,517.25. Earlier, the blue-chip stock gauge fell 233 points. The benchmarket Standard & Poor's 500 closed with a 14.72-point loss at 1,351.26.

"The market was down so many days in a row, and there is still plenty of nervousness. But the sellers stopped and a couple of guys came in nibbling. But, the nervousness is still out there until this election gets settled," said one trader.