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NEW YORK -- Wall Street stepped back today, taking profits from the stellar gains that followed the Federal Reserve's unexpected interest rate cut. Stocks finished lower after fluctuating throughout the session. Dow off 33.34
Associated Press
The Dow Jones industrial average lost 33.34 to close at 10,912.41 after rising 299.60, or 2.8 percent, yesterday. The Nasdaq composite index fell 49.86 to 2,566.84 after posting its biggest one-day point and percentage gains ever yesterday, jumping 324.83 or 14.2 percent. The broader Standard & Poor's 500 index dropped 14.23 at 1,333.35 after advancing 64.29, or 5 percent, yesterday.
Advancers outnumbered decliners on the New York Stock Exchange, with 1,597 up, 1,362 down and 358 unchanged. Volume was a record 2.10 billion, higher than the previous mark of 1.87 billion set yesterday.
The NYSE composite index fell 7.00 to 652.07, the American Stock Exchange composite index lost 12.50 to 870.01 and the Russell 2000 index fell 7.19 at 477.20. The Treasury's 10-year note rose 29/32 to 105 11/32; its yield fell 12 basis points to 5.04. The 30-year bond rose 27/32 to 111 23/32; its yield fell 5 basis points to 5.44 percent.
Some pullback was expected after the Fed's half-point rate cut -- a reduction that was bigger and sooner than expected -- finally gave investors a reason to buy stocks, in particular discounted technology issues. "Investors awoke today to realize the reason the Fed lowered rates the way they did yesterday is because the economy is fairly soft," said Charles G. Crane, strategist for Spears, Benzak, Salomon & Farrell in New York.