Dow falls as markets react to Fed chairman

Federal Reserve chairman Alan Greenspan shook US financial markets yesterday, fretting over the high prices of stocks and promising…

Federal Reserve chairman Alan Greenspan shook US financial markets yesterday, fretting over the high prices of stocks and promising to "act promptly and forcefully" at the first hint of inflation dangers.

In a volatile session on Wall Street, the Dow Jones industrial average fell 33.56 to close at 10,969.22.

The index declined as Greenspan began his remarks and pitched forward and back for the rest of the session as Wall Street traders debated the impact of his testimony.

At one point, the Dow dipped more than 100 points from Wednesday's close.

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Declining issues outnumbered advancers by a 12-to-seven margin on the New York Stock Exchange, with 1,818 down, 1,098 up and 614 unchanged.

NYSE volume totalled 771.72 million shares, against 782.94 million in the previous session.

The NYSE composite index fell 5.70 to 641.78, and the US Stock Exchange composite index fell 7.00 to 799.81.