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US stocks flat after rally

Aug 24 2009 22:47

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New York - US stocks ended mostly flat on Monday, reversing early gains following a four-day winning streak that had pushed markets to 10-month highs amid hopes of a global economic recovery.

The Dow Jones Industrial Average rose 3.32 points (0.03%) to 9 509.28 in closing trades, shrinking from a double-digit gain in early trading.

The tech-heavy Nasdaq composite dipped 2.92 points (0.14%) to 2 017.98 while the broad-market Standard & Poor's 500 index fell 0.57 points (0.06%) to a provisional close of 1 025.56.

A big rise in US Treasury bond prices, which drove benchmark yields lower, dampened sentiment as the federal government bought debt in an apparent bid to keep interest rates low, traders said.

"A contest between buyers and sellers has left stocks at the unchanged mark," analysts at Briefing. com said in a client note.

Wall Street had soared on Friday at the end of a four-day rally on growing evidence that the global economic recession is ending. Federal Reserve chief Ben Bernanke, in his clearest signal yet that the global recession will soon be over, said Friday that prospects for growth "appear good" despite financial market strain.

Stock analysts cautioned that the bull run could face sharp corrections, as stocks were now up some 17% during the last six weeks despite weak US consumer confidence and rising unemployment clouding recovery prospects.

- AFP

 
 
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