Wednesday's markets: Stocks mixed, bonds decline; Dollar improves
Stock prices finished mixed, dragged down by renewed inflation fears and the likelihood that the Federal Reserve will raise rates at the end of this month. Bond prices eased and the dollar strengthened.</br></br>Stock prices staged a fierce comeback in the session's waning moments. The Dow Jones Industrial Average, down more than 20 points at mid-session, charged toward breaking even in the final minutes, ending down 1.68 at 3928.98.</br></br>Broader indexes also neared their opening levels at the close. The Standard & Poor's 500-stock index fell 0.33 to 469.72, and the New York Stock Exchange Composite Index eased 0.28 to 255.97. Meanwhile, the Nasdaq Composite Index rose 0.24 to 772.38.</br></br>Despite the late snap-back, analysts showed new wariness about inflationary pressures. Gold prices, often seen as a hedge against inflation, bounced higher. Spot gold in New York gained $2 to finish above $382.30 an ounce. In addition, the closely watched Knight-Ridder CRB Index rose 1.07 to 236.65.</br></br>"Gold is higher, oil stocks are up and the CRB Index continues to rise," said David Shulman, market strategist for Salomon Brothers. "And I think at some point the bond market will look over its shoulder and see those rising prices, and they won't like it."