The Dow Jones industrial average fell 34.69 to close at 5,553.90 amid concerns about the effects of rising interest rates and inflation on earnings growth.

Decliners led advancers by 1,213 to 1,168 on the New York Stock Exchange. NYSE volume totaled 493.36 million shares vs. 452.68 million in the previous session.

Most broader-market measures were lower too, but the technology-heavy Nasdaq composite index staged another broad advance and now has risen more than 7 percent is less than two weeks.

The NYSE composite fell 0.64 to 348.96. The S&P 500 list was 1.41 lower at 650.17. The Nasdaq composite index rose 8.78 to 1,175.54.

At the American Stock Exchange, the market value index fell 1.68 to 589.05, ending a six-session streak of record finishes.

Compaq Computer became the latest technology stock to dispel widespread fears about industry sluggishness with strong earnings. The world's lead personal computer maker said its profit increased 8 percent and sales jumped 45 percent during the first quarter.

Rival computer stocks also rose after the Compaq report. On the NYSE, Digital Equipment, which jumped almost 10 percent yesterday after reporting that its quarterly earnings rose 68 percent, and Hewlett Packard, both rose. On the Nasdaq, Dell Computer and Gateway 2000 advanced sharply.

Analysts attributed some of the blue-chip market's decline to some poor earnings reports, continuing weakness in the bond market and the dollar's renewed strength against other currencies, which hurts the value of foreign revenues for big multinational companies.

Bonds edged lower, with long-term interest rates climbing above 6.8 percent.

Strong economic readings often hurt bond prices, because traders are concerned that too much growth will cause inflation, which eats away at the value of fixed income investments. Stocks often fall with bonds because higher borrowing costs hurt corporate profits.