Stock, Bond Prices Fall; Dollar Slips --- Declines Considered A Normal Response To Recent Advances
AuthorAffiliation Staff Reporter of The Wall Street Journal</br></br>Both the stock and bond markets opened with sharp declines. But a wave of afternoon buying pulled stocks off of their lows. The recovery was especially apparent in the technology sector.</br></br>"This group is notorious for very quick reversals," said Joseph Battipaglia, chief investment strategist at Gruntal. He pointed out that it wasn't the first time that investors have started buying tech stocks after they have fallen to a certain point. "The sell-off in the tech sector looks finished," he declared.</br></br>The benchmark 30-year Treasury bond fell in the morning and stayed down for the rest of the day. Analysts said there was no one single reason for the sell-off.</br></br>"One thing that is happening is that people are beginning to adjust down their expectations that the Federal Reserve may ease interest rates," said Mickey D. Levy, chief financial economist at NationsBank. The Fed's policy-setting committee meets on Tuesday of next week.