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Dow sinks 156.68;
Nasdaq rises

Associated Press

NEW YORK -- Stocks were mixed in volatile trading today as blue-chip issues, falling victim once again to investor worries about interest rates, ended a two-day rally. Technology stocks managed a slim advance.

The Dow Jones industrial average dove 156.68 points, or 1.46 percent, to close at 10,561.41, wiping out more than half of a 292-point gain in the past two sessions. The Standard & Poor's 500 fell 14.38 to 1,387.67, and the Nasdaq composite index rose 6.88 to 4,427.65.

Decliners beat advancers by a 4-to-3 margin on the New York Stock Exchange, with 1,722 down, 1,292 up and 472 unchanged. NYSE volume totaled 1.015 billion shares vs. 1.09 billion yesterday.

The NYSE composite index fell 5.91 to 604.97; the American Stock Exchnage composite index rose 7.93 to 902.25; and the Russell 200 index gained 7.52 to 547.76.

The 30-year bond fell 6/32 point, or $1.87 per $1,000 face amount; its yield rose 2 basis points to 6.26 percent.

Benchmark 10-year note yields were little changed at 6.55 percent and two-year yields were unchanged at 6.62 percent.

American Express led the Dow lower today, tumbling as investors guessed it will be among the stocks to suffer if the Federal Reserve continues raising interest rates to force a slowdown in the U.S. economy. In an effort to keep inflation under control, the Fed has raised rates four times since last June.

So far, the Fed has received little evidence that raising rates has worked, analysts said.