Fears of higher interest rates again prompted investors to overlook strong earnings — this time from ChevronTexaco Corp. and Procter & Gamble Co.

The Dow Jones industrials closed down 46.70, or 0.5 percent, at 10,225.57, while the Standard & Poor’s 500 index finished down 6.59, or 0.6 percent, at 1,107.30.

The Nasdaq tumbled 38.63, or 2 percent, to 1,920.15, according to preliminary calculations. The drop gave the Nasdaq a 6.4 percent decline for the week, its worst performance since a nearly 6.5 percent slide in the week ended Oct. 18, near the lowest point of the bear market.

The Dow lost 2.4 percent for the week and the S&P slipped 2.9 percent.

Bob Dickey, of RBC Dain Rauscher in Minneapolis, said, "the bottom line is we’re still in a trading range we’ve been in for four months and could be in for another four months."

He added that it was almost as if "the doldrums of summer have set in early."

Upbeat economic news was again little comfort to investors worried that the data will give the Federal Reserve more of an impetus to raise interest rates.

The Commerce Department reported that consumers boosted their spending by 0.4 percent last month. That followed a 0.4 percent increase in February, according to revised figures. The figures are closely watched because consumer spending accounts for roughly two-thirds of all economic activity in the United States.

Yesterday, the market fell after the government reported that the economy as measured by the gross domestic product grew at a 4.2 percent annual rate in the first quarter, a slight improvement from a year earlier.

Jim Russell, of Fifth-Third Asset Management in Cincinnati, said fear of higher rates and slowing earnings momentum appeared to be prompting some investors to take profits.

However, Kevin Caron, of Ryan, Beck & Co., suggested investors were overreacting to the possibility of rate hikes.

"The rash of data over the last month suggests the Fed will move sooner rather than later, so the market gets nervous," Caron said. "But ultimately it is the earnings that drive stock prices, not what the Fed does."

P&G shares rose 41 cents to $106.38 on earnings that came in a penny ahead of expectations.

Investors also rewarded ChevronTexaco for better-than-expected results. Its shares closed up $1.64, or 1.8 percent, at $91.99.

Declining shares led advancers more than 4 to 3 on the New York Stock Exchange. The Russell 2000 index of smaller companies was down 7.45, or 1.3 percent, at 559.80.