The Dow Jones industrial average fell 9.62 to 5,867.74, having recovered from a 30-point drop.
Decliners outnumbered advancers by an 8-to-7 margin on the New York Stock Exchange, with 1,110 up, 1,273 down and 848 unchanged. NYSE volume totaled 395.88 million shares, vs. 395.82 million yesterday.
The Standard & Poor's 500-stock index closed up 1.53 at 683.00, and the NYSE's composite index rose 0.50 to 363.94. The Nasdaq composite index rose 6.38 to 1,212.09, and the American Stock Exchange index fell 1.21 to 565.44.
The technology-heavy Nasdaq market rose the 10th straight session as investor interest in rebounding computer-industry shares continued to mount.
Despite rising interest rates in the bond market, investors have been hesitant to sell shares in the 30 Dow components and other large-company measures that have returned to record levels in the past week.
As bond prices fell this morning, the yield on the 30-year Treasury bond - a key determinant of corporate and consumer borrowing costs - rose to 7.04 percent, up from late yesterday's 7.01 percent.
Stocks followed bonds lower after the government reported that construction of new homes and apartments unexpectedly shot up 4.5 percent in August to the highest level in nearly 21/2 years.