Posted on: Friday, July 1, 2005
Stocks tumble on word rate hikes to continue
By Michael J. Martinez
Associated Press
NEW YORK — Disappointed investors sent stocks tumbling yesterday after the Federal Reserve said it would keep to its policy of raising interest rates at a "measured" pace.
The Dow Jones industrial average was hit harder than other indexes. The Dow fell 99.51, or 0.96 percent, to 10,274.97. Broader stock indicators also dropped. The Standard & Poor's 500 index was down 8.52, or 0.71 percent, at 1,191.33, and the Nasdaq composite index lost 11.93, or 0.58 percent, to 2,056.96.
Oil prices, also a major concern on Wall Street, extended their decline from Monday's record highs of more than $60 per barrel. Crude ended trading at $56.50, down 76 cents, on the New York Mercantile Exchange.
Bonds were higher, with the yield on the 10-year Treasury note falling to 3.92 percent from 4 percent.
Stocks finished a turbulent second quarter with mixed results, as crude oil futures fluctuated widely and as concerns about inflation and a possible economic slowdown roiled the markets. For the quarter, the Dow lost 2.18 percent, while the S&P gained 0.91 percent and the Nasdaq climbed 2.89 percent as technology stocks came back into vogue.
For the year, however, stocks remain lower. So far this year, the Dow is down 4.71 percent, the S&P is off 1.7 percent and the Nasdaq has dropped 5.45 percent.
Declining issues outnumbered advancers by about 8 to 7 on the New York Stock Exchange, where consolidated volume came to 2.22 billion shares, compared with 1.82 billion Wednesday.
The decline, which took the Dow Jones industrials down nearly 100 points, left the market with a mixed performance for the second quarter.
