American shares gave up a 400-point gain today as concerns about the details of the Government's $250 billion rescue deal began to emerge.

In late afternoon trading, US stocks fell led by technology companies on concerns a sharp global economic slowdown would crimp profits.The Dow Jones industrial average fell 76.62 points, or 0.82 per cent, to 9,310.99, while the Standard & Poor’s 500 Index dropped 5.34 points, or 0.53 percent, to 998.01. The Nasdaq Composite Index was down 65.24 points, or 3.54 per cent, at 1,779.01.

The Dow Jones had fallen when the market opened by 73.91 points to 9,313.7, wiping out strong gains made after the US Treasury unveiled a plan to invest in nine American banks to stabilise the country's financial system. But by 2pm stock had risen by 114.29 points at 9,273.32.

“We don’t know if the bottom is in,” said Lincoln Anderson, chief investment officer and chief economist at LPL Financial in Boston. “We certainly expect heightened volatility for a fair amount of time while we sort out just exactly what’s going on.”

Investors are fearful that there are onerous terms attached to the Treasury's scheme, where it will take preference shares in banks exchange for capital.

In particular, there are concerns that banks will be forced to suspend dividends until the Government's investment has been repaid in full, which mirrors the £37 billion bailout plan announced by Prime Minister Gordon Brown yesterday.

The UK's leading banks, including Royal Bank of Scotland, will not give shareholders a dividend until the British Government's investment in preference shares has been paid back.

It is also understood that American shares lost ground today after other industries outside of the banking sector approached the US Treasury for funds but were refused on grounds that the Government needed to focus on the "grass-roots" financial problem.

Shares of Intel were among the top drags on the Nasdaq as investors worried about the chipmaker’s quarterly results, which are due after the closing bell. Intel lost 6.24 per cent to $15.93 on Nasdaq.

Disappointing results and outlook from soft drink company PepsiCo further fueled worries about the earnings season. The company’s weaker-than-expected earnings also deepened concerns about how consumer spending will hold up in the face of declines in home values and stocks, as well as tighter credit. PepsiCo’s shares tumbled 11.93 per cent to $54.40.

Shares in London remained robust, up 126.4 points to 4,383.33 but fell short of today's highs when stock rose by over 260 points in anticipation of the banking bailout by the US.

The wider London market has supported by a $2.65 rise in oil to $83 a barrel, sending Tullow Oil up 12.46 per cent to 577.5p while Kazakhmys rose by 11.69 per cent to 456.25p.

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