Unable to Escape Nagging Worries, Market Skids Into Weekend

It was a typical session in these not so typical times. Trading volume remained light today, with heavy-walleted investors unsure where to spend their dough. Even the Old Economy blue-chips, which handled the Fed's 50-basis-point hike in stride, were up for sale, as future-interest-rate uncertainty continued plaguing the market.

Major Indices INDEX CHANGE % VALUE YR TO DATE Dow -150.43 -1.40% 10,626.85 7.6% S&P 500 -30.26 -2.11% 1406.95 4.2% Nasdaq -148.31 -4.19% 3390.40 16.7% Russell 2000 -11.25 -2.29% 479.70 5.0% TSC Internet -59.73 -6.76% 823.83 28.6% TSC New Tech 30 -32.13 -6.31% 477.26 -22.8% NOTE CHANGE PRICE YIELD 10-Year Treasury 5/32 100 6.498%

Combine a 50-basis-point hike, cautionary comments on future rate increases and a double expiration and you have a recipe for a selloff. Add some hawkish comments from the some government insiders, and you're almost certain of a red-ribbon plunge. Yesterday, New York Fed President William McDonough said during a speech at the New Jersey Business Conference that the U.S. economy was showing signs of strain and that the Fed would have to keep a careful eye on inflation. Could the Fed be setting the stage for another 50-basis-point hike in June, at the next FOMC meeting?

Investors thought so, and cashed in shares that they held even in the wake of Tuesday's half-point hike. "There's not a lot of activity and conviction," said Jack Ablin, managing director at Colonial Asset Management. "Everyone is sitting on the sidelines and we don't see a catalyst before the next FOMC meeting, unless there is some weaker-than-expected economic data." ...