US blue chips extended their, decline yesterday, bringing losses since the rout started a week ago to more than 400 points, but battered technology stocks showed signs of life as Wall Street braced for a key economic indicator.

The Dow Jones Industrials finished down 39.66 points at. 6477.35. But blue chips rallied late in the day after being down more than 95 points.

All eyes were on today's report on March US payrolls, wages and unemployment. "It could be a killer if it goes the wrong way, said Mr Jim Benning, a trader at BT Brokerage. If the report shows a more robust than expected US economy, it will add to growing fears among investors that the Federal Reserve will have to further raise interest rates in order to cool the economy, analysts said.

It appears that the market already anticipating a number that is going to cause further indigestion," said Mr Charlie Crane, chief market strategist at Key Asset Management.