TECHNOLOGY shares led a sharp sell off in New York this afternoon even after the Federal Reserve left its key lending rates unchanged, soothing investor worries about rising inflation or interest rates.
The Dow Jones held a gain of 39 points shortly after 2 p.m., when the Fed announced no increase in its key lending rates to slow the economy as protection against inflation, but fell later in the day.
Broader measures fell sharply in the afternoon as well, with the technology laden Nasdaq market posting the biggest losses.
Trading had remained cautious and quiet as the Federal Reserve's policy makers convened for the second day of a two day meeting to discuss economic conditions around the country.
The Standard and Poor's 500 stock list, down nearly 16 points at its low, closed at 778.18, down 11.08. The NYSE's composite index fell 4.60 to 408.74. The Nasdaq composite index tumbled 25.31 to 1,348.44 after recovering from a 30 point slide.
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