New York, Sep 25 (DPA) Wall Street benchmarks lost ground Thursday after a renewed, unexpected drop was reported in sales of existing homes, despite an earlier reported surprise decrease in new unemployment claims had pointed to a stabilizing economy.

The rate-setting Federal Reserve Board announced Thursday that it would cut back a programme established to bolster credit markets at the height of the financial panic a year ago. The move itself is a sign of the Fed's growing confidence that the deep, ongoing recesson is easing, but also a sign to investors that markets will increasing be weaned from government emergency support.

Thursday was the second straight session of declines in stock values, which have enjoyed a major rally since March.

The blue-chip Dow Jones Industrial Average slipped 41.11 points, or 0.42 percent, to 9,707.44. The broader Standard and Poor's 500 Index lost 10.09 points, or 0.95 percent, to 1,050.78. The technology-heavy Nasdaq Composite Index fell 23.81 points, or 1.12 percent, to 2,107.61.

The US currency gained against the euro to 68.201 euro cents from 67.98 euro cents on Wednesday. The dollar dropped against the Japanese currency to 91.26 yen from 91.46 yen Wednesday.