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Dow off 38.53
Associated PressNEW YORK -- Investors lost their nerve on the eve of the Federal Reserve's decision on interest rates, sending stocks lower today in a late-afternoon selloff.
Stocks had been modestly higher for most of the session as investors speculated that the Fed will leave interest rates unchanged. But investors remained uncertain and restless, shifting money from sector to sector without much conviction about the underlying strength of the market. Ultimately, stocks slipped.
The Dow Jones industrial average fell 38.53 to close at 10,504.46; the Standard & Poor's 500 index was down 4.70 at 1,450.55, and the Nasdaq composite index was down 53.16 at 3,858.96.
Analysts said investors were demonstrating some cautious optimism, evidenced by the fact that more stocks were rising than falling. On the New York Stock Exchange, advancing issues beat decliners by a more than 8-to-7 margin, with 1,632 up, 1,296 down and 458 unchanged. Also, trading activity was quiet, but not as anemic as some analysts had expected on the day ahead of the Fed's decision. More than 1.02 billion shares traded on the NYSE, up from 890.07 million yesterday. The NYSE composite index slipped 0.23 at 643.71; the American Stock Exchange composite index advanced 0.44 to 935.27; and the Russell 2000 index fell 8.28 to 508.08.
The 5-year Treasury note fell 1/32 point, or 31 cents per $1,000 face amount, as its yield rose 1 basis point to 6.28 percent. The current 10-year note rose 3/32 to 102 31/32, while its yield dropped 1 basis point to 6.09 percent. The 30-year bond jump 21/32 point; its yield fell 4 points to 5.94 percent.