Market Shows Slight Loss As of Early Afternoon
NEW YORK (AP) _ The Dow Jones industrial average today fell slightly in a session of wide swings that followed Tuesday’s record 54.14-point jump to an all-time high.
At 2 p.m., the closely watched index, up more than 17 points in the first half hour and down about 18 early in the afternoon, showed a 3.37 loss at 2,234.12.
Tuesday’s 2,237.49-point close surpassed the previous record of 2,201.49 set Feb. 5.
Tuesday’s rise also broke the daily point-gain record of 51.60 set Jan. 22.
The closely watched average now stands more than 340 points above its level when the year began.
Analysts said the surge was supported by big cash holdings of institutions and foreign traders, who were reluctant to put their money into the sagging bond market.
Bond prices continued falling Tuesday, amid investor concerns about prospects for higher interest rates and lower foreign participation due to the dollar’s stuady decline against other currencies.
The shrinking U.S. dollar makes dollar-denominated securities such as bonds relatively less attractive to foreign investors, but also makes U.S. stocks comparatively attractive and U.S. companies more competitive overseas.
The analysts also said investors were encouraged by the way the market had shrugged off the latest developments in the insider trading scandal last week, and that this optimism bolstered the market’s bullish mood.