Blue-Chip Stocks Continue To Slide; Greenspan Remarks Worrying Wall Street
Blue-chip stocks extended their losses today as the renewed threat of higher interest rates convinced investors that the strong corporate earnings of the second quarter might be in jeopardy.</br></br>After dropping as much as 100 points in early trading, the Dow Jones industrial average closed 58.26 points lower, at 10,910.96. For the week, the Dow lost 298.88 points, or 2.7 percent.</br></br>Broader stock indicators were mixed, as the Nasdaq composite index, which had fallen steeply earlier this week, managed a last- minute gain of 7.96, closing at 2692.40. For the week, the Nasdaq lost 6.1 percent of its value.</br></br>Banks and brokerages led the Dow lower today, as Thursday's remarks by Federal Reserve Chairman Alan Greenspan continued to worry Wall Street.</br></br>Greenspan told Congress that while 1999 has been an exceptional year for the U.S. economy, the central bank would "act promptly and forcefully" by raising interest rates at the first hint of inflation pressures.