NEW YORK, Jan 23: The US and European stocks slid on Wednesday, hammered by persistent worries about a US recession, one day after the Federal Reserve’s surprise interest rate cut boosted global markets.

Safe-haven government bonds and the yen, which tend to rise as investors pare risky trades, gained ground. European stocks closed at their lowest level in 1-1/2 years on Wednesday, as fears of more mortgage-related write-downs again hit bank shares.

In the United States, all three major stock indexes fell more than 1 per cent as disappointing outlooks from technology leaders Apple Inc and Motorola Inc added to recession fears.

“When the Fed cuts 75 basis points, stocks are supposed to go up,” said T.J. Marta, fixed income strategist at RBC Capital Markets. “That's not happening. There's a lot of dread out there.”

The Dow Jones industrial average was down 186.15 points, or 1.55 per cent, at 11,785.04. The Standard & Poor's 500 Index was down 23.78 points, or 1.81 per cent, at 1,286.72. The Nasdaq Composite Index was down 62.46 points, or 2.72 per cent, at 2,229.81.

After rising as much as 1.6 per cent, the FTSEurofirst 300 index of top European shares closed down 3.22 per cent at 1,262.40 points.—Reuters