Stocks gave up sharp early gains and turned mixed yesterday in advance of a meeting of Federal Reserve policy-makers that is expected to lower interest rates in a bid to revive the global economy.

The Dow Jones industrial average, which rose 133.11 points last week, added as much as 131.56 in the early going before giving up some of its gains. It closed up 80.07, or by 1 per cent, at a one-month high of 8,108.84.

The gain left the Dow up 200 points, or 2.5 per cent, from where it began the year.

The technology-heavy Nasdaq composite index fell 4.37 to 1,739.22. Banks, which stand to benefit from an interest rate cut, were among Wall Street's big gainers early in the day, but gave up some gains late in the session.

Advancing issues outnumbered decliners by a 4-to-3 margin on the New York Stock Exchange, with 1,774 up, 1,294 down and 466 unchanged.