NEW YORK -- Stocks fell sharply today, extending a dismal week on Wall Street, as investors became increasingly certain that the Federal Reserve will raise interest rates to slow down the robust U.S. economy.
Dow off 130
While fears about a rate increase have shaken stocks for weeks, rumors that the Fed would boost rates higher -- or sooner than previously thought -- sent the market sliding in afternoon trading.
At the close, the Dow Jones industrial average was down 130.76 at 10,490.51. The blue-chip index fell 309.33 points, or 2.9 percent, for the week.
Broader stock indicators also fell.
The Standard & Poor's 500 index fell 9.18 to 1,293.64, and the technology-dominated Nasdaq composite index fell 36.74 points to 2,447.88.
Declining outnumbered advancers by a 4-to-3 margin on the New York Stock Exchange, with 1,933 down, 1,005 up and 582 unchanged.
NYSE volume totaled 703.06 million shares vs. 703.06 million yesterday.
The NYSE composite index fell 3.35 to 619.50, and the American Stock Exchange composite index fell 2.43 to 765.82.
The Russell 2000 index of smaller companies fell 4.26 to 438.01.
Yields on 30-year Treasury bonds rose 10 basis points to the highest level in 19 months as prices fell 1 9/32, or $12.81 per $1,000 security, to 87.75. The benchmark bond has dropped more than $40 so far this month, sending its yield up about 32 basis points as many investors concluded the Fed will raise its target for overnight lending, now 4.75 percent, when it meets June 29-30.