Markets Await Fed Decision Amid Low Trading Volume

Yesterday's subdued trading on Wall Street reflected the collective holding breath of traders as they awaited the Federal Reserve Board's policy-setting meeting, with many hoping for swift action to reduce uncertainty. The Nasdaq composite index, now in its third day of decline, fell 5.01 points to 711.91, while the Dow Jones industrial average rose 11.82 points to 3,671.50. The lack of clear direction on the Fed's decision led to cautious trading, with few stocks moving significantly.

Key Takeaways:

• The Nasdaq composite index fell 5.01 points to 711.91, its third consecutive day of decline.
• The Dow Jones industrial average rose 11.82 points to 3,671.50, while the broader Standard & Poor's 500 index rose 0.35 point to 444.49.
• High-technology stocks, including Intel, Microsoft, and Wellfleet, were among the top decliners, while not-so-futuristic companies like US Health Care and Worthington Industries also fell.
• Traders expressed conflicting views on the potential impact of the Fed's decision, with some expecting stability or a rally and others anticipating a decline.
• The smallest average number of shares traded on the New York Stock Exchange in four months occurred yesterday, with volume totaling just 234.7 million shares, a 22 percent drop from the year's average of 302 million shares.
• Cisco Systems, a computer networking company, was the most active stock of the day, with 13.1 million shares changing hands, after its order book growth slowed.

Statistics:

• The Nasdaq composite index fell 5.01 points, representing a decline of approximately 0.7% from its previous day's close.
• The Dow Jones industrial average rose 11.82 points, representing a gain of about 0.32% from its previous day's close.
• The 15 most shareholder-held stocks in the market (The "Favorite Stocks") performed as follows:

+ Average gain: 0.35 points

+ Average loss: -0.89 points

• Cisco Systems traded 13.1 million shares, the highest volume of the day, after announcing a slower growth rate in its order book.

Sources:

• "Wall Street sweated out the Federal Reserve Board's policy-setting meeting..." _The New York Times_, no specific publication date mentioned.
• "A lot of people were just sitting on the sidelines, waiting for the Fed," said Timothy G. Grazioso, manager for Nasdaq trading at Cantor Fitzgerald and Co.
• "The Favorite Stocks" table provided in the article shows performance of the 15 issues with the most shareholders.