Stocks were mixed in a quiet session in New York yesterday after a tame inflation report failed to calm investors' fears that the Federal Reserve will again raise interest rates to force a slowdown in the US economy.

Technology stocks eked out a modest advance, helping the Nasdaq composite index to close higher for a second consecutive week. But investors in the broader market could not shake off worries that higher interest rates will cut into corporate profits, analysts said.

The Dow Jones industrial average fell 54.66, or 0.5 per cent, to close at 10,614.06. The blue-chip index had been higher for most of the morning. For the week, the Dow fell 180.70 points.

Broader stock indicators were mixed. The Nasdaq composite rose 49.28, or 1.3 per cent, to close at 3,874.84, bringing its gain for the week to 61.56 points.

The Standard and Poor's 500 fell 4.72 to 1,456.95.