U.S.

<A href="http://cbs.marketwatch.com/news/current/snapshot.htx?" target="external">A Bumpy Day On Wall Street</a>

By CBSNews.com staff CBSNews.com staff

May 22, 2000 / 12:18 PM EDT / CBS

Stocks managed to bounce back late in the session, with the major averages all losing ground, but well off intraday lows. The Dow Jones industrial average closed down 84 points, to end at 10,542. The blue chip index had been off more than 200 points earlier. Declining issues topped gainers three to two, with about 870 million shares traded on the New York Stock Exchange. The Nasdaq composite, which also lost more than 200 points in mid-day trading, ended down 26 points to close at 3364. The S&P 500 dropped six points to close just shy of 1401.

Without much news to drive the market, interest rate worries continued its hold on Wall Street. Many analysts are holding to the view that the current weakness is washing out the exuberance that dominated the market at the close of 1999 and in early 2000.

"We think the correction for technology stocks still has further to go," said Thomas McManus, equity portfolio strategist at Banc of America Securities in New York. He adds that even the bellwether names, which attracted investors in the wake of April's technology selloff, are now under escalating pressure.

Recent economic reports have offered a mixed report on whether the Fed's rate increases are successfully slowing the economy, and the next major report won't hit the market until Thursday, when the Commerce Department issues a preliminary report on the gross domestic product during the first quarter.

European stocks were also on the down trail, with Nokia, Philips, Ericsson and Alcatel closing in losing territory. London's FTSE-100 share Index was down .2 percent.

In Japan, the Nikkei stock average fell 2.8 percent as leading technology stocks fell steeply.