The Dow Jones industrial average fell 47.33 to 6,877.74, a three-session decline of about 160 points.
Decliners outnumbered advancers by a 4-to-3 margin on the New York Stock Exchange, with 1,061 up, 1,450 down and 837 unchanged. NYSE volume totaled 508.27 million shares vs. 464.67 million yesterday.
The Standard & Poor's 500-stock list fell 4.25 at 790.82, and the NYSE composite index fell 2.38 at 415.51. The Nasdaq composite index fell 3.66 to 1,309.00, and the American Stock Exchange composite index fell 0.93 to 594.24.
Broader measures also fell, although the Nasdaq composite index, hard-hit two weeks of profit-
taking in the technology sector, suffered more marginal losses as several computer-industry bellwethers started to recover.
Stocks have been retreating with bonds since Wednesday, when Fed chairman Alan Greenspan warned sternly that the stock market's stunning advance poses an inflationary risk. Greenspan, in a report to Congress, cautioned that the central bank may increase interest rates even before increased inflation is evident.
The concerns over a Fed rate hike continued today after another Fed official issued some more cautionary comments.
But bond prices steadied after a two-day pullback, leaving the yield on the 30-year Treasury unchanged at 6.80 percent.