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NEW YORK -- With Wall Street worrying about a recession, investors sold off stocks today after the Federal Reserve said it was lowering interest rates by a half-point for the second time this month. Dow up 6.16
Associated Press
Investors interpreted the Fed's midafternoon announcement as a reason to take profits from the market's recent gains. Although they know lower rates should eventually lift earnings and the economy, investors couldn't be sure how long that would take.
The Dow Jones industrial average closed up 6.16 at 10,887.36. The Dow lost most of the approximately 50-point gain it had before the Fed's decision.
Broader market indexes retreated to negative territory. The Nasdaq composite index fell 65.62 to 2,772.73 after being up nearly 20 points before the Fed announcement. The Standard & Poor's 500 index, which had risen nearly 5 points, lost 7.72 to finish at 1,366.01. Advancers outnumbered decliners nearly 7 to 6 on the New York Stock Exchange, with 1,767 up, 1,373 down and 170 unchanged. Volume was 1.26 billion shares vs. 1.14 billion yesterday. The NYSE composite index fell 0.55 to 663.64, the American Stock Exchange composite index lost 4.16 to 930.12 and the Russell 2000 index fell 3.32 to 508.34. The Treasury's 10-year note rose 29/32 to 104 25/32; its yield fell 12 basis points to 5.11 percent. The 30-year bond rose 1; its yield fell 9 basis points to 5.50 percent.
Applied Materials lost $2.13 to finish at $50.31. The maker of semiconductor equipment said after the market closed yesterday that sales for its fiscal first quarter would fall below estimates.