"As a firm we have been net sellers for the past few days because people are taking money off the table," said Robert McCooey, chief executive of Griswold Co., a New York Stock Exchange floor broker that serves large asset managers and hedge funds. His clients say "this is it for the time being."

The S&P 500 declined 8.83, or 0.5 percent, to 1157.30. The Dow Jones Industrial Average fell 49.33, or 0.5 percent, to 10,525.23. The Nasdaq Composite Index lost 8.82, or 0.5 percent, to 1881.44.

While Federal Reserve Chairman Alan Greenspan told Congress that the recovery is "well under way," he repeated a comment from testimony last week that the rebound will be "moderate."

"We've likely come up a little too quick and have to give some of it back," said Jay Finkel, senior equity trader at Lord, Abbett & Co., which manages $33 billion in Jersey City, N.J.

The S& P 500, up 20 percent the past six months, trades at about 23 times forecast earnings, compared to 19 last September. It traded at about 24 times when the market peaked in March 2000.

"People are looking at the industries that will benefit from the recovering economy, but these things have had enormous runs in the past six months," said Brett Gallagher, who helps manage

$4 billion at Julius Baer in New York. "They are priced at peak earnings, and those aren't going to occur for some time."

More than 1.5 billion shares traded on the NYSE, 11 percent above the three-month daily average. Advancing and declining stocks were about even on the Big Board. Ten stocks rose for every nine that fell on the Nasdaq Stock Market.

GE, the largest company by market value, fell 60 cents to $40.95. American International Group Inc., the biggest insurer, declined $1.40 to $74.75. The two are the top aircraft-leasing companies, and Standard & Poor's Corp. said they must lower rates as airlines and planemakers face a decline in air travel.

Microsoft Corp. fell 91 cents to $62.72. A defect forced the largest software maker to recall 250,000 Xbox game consoles it sold in Japan since introducing the device there two weeks ago.

Boeing Co. lost $1.38 to $48.48, leading the decline on the Dow. Rival planemaker Airbus SAS said it won an order for 41 planes from South African Airways worth as much as $3.5 billion at list price. Airbus defeated Boeing, which once supplied most of the carrier's fleet.

Japan's Nikkei 225 stock average rose to a seven-month high on signs of a rebound in the U.S. economy that Deutsche Securities Ltd. said may help Japan avert a financial crisis. Banks such as Mizuho Holdings Inc. led.

The Nikkei is the world's best performer in the past four weeks on expectations the government will continue to prop up share prices before the fiscal year-end. Merrill Lynch & Co., Credit Suisse First Boston Ltd. and now Deutsche this week recommended investors buy Japanese stocks to take advantage of an expected short-term rally.