NEW YORK >> Blue chip stocks fell sharply today as investors' increasing caution prevailed over optimism about a likely interest rate cut this week. Stocks fall despite
Fed watchBy Lisa Singhania
Associated PressThe softness in big-name stocks, which also limited technology gains, reflected the market's fragility and investors' shaken confidence in light of recent corporate warnings and layoff announcements.
The Dow Jones industrial average closed down 100.37 at 10,504.22, its second straight session of triple-digit losses.
Broader stock indicators were mixed, reflecting tech's overall stronger performance. The Nasdaq composite index rose a moderate 16.00 to 2,050.84, while the Standard & Poor's 500 index fell 6.74 to 1,218.61.
Declining issues outnumbered advancers by 3 to 2 on the New York Stock Exchange, with 1,792 down and 1,300 up. Volume came to 1.19 billion shares. The NYSE composite index fell 5.24 to 620.13, the American Stock Exchange composite index lost 3.10 to 902.88 and the Russell 2000 index lost 3.06 to 485.59.
The Treasury's 10-year note fell 3/32 to 99 1/32, boosting yields 2 basis points to 5.13 percent. The 30-year bond rose 1 basis point to 96 30/32 and yielded 5.59.
The weakness came despite the widespread expectations that the Federal Reserve will cut interest rates for the sixth time this year when it meets tomorrow and Wednesday.
Although stocks rose initially, that trend reversed itself as the day went on, a sign that investors remain wary after weeks of hearing from companies reducing their earnings projections and cutting jobs.
Blue chips fell across the market. Some of the most notable declines came in stocks including Home Depot, which dropped $1.71 to $49, and American Express, which fell 87 cents to $39.88 although it part of the financial sector that usually benefits from rate cuts.
Overseas, Japan's Nikkei stock average fell 1.1 percent. Germany's DAX index slid 0.7 percent, Britain's FT-SE 100 dropped nearly 0.1 percent, and France's CAC-40 gained 0.6 percent.