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.