As always, it was the things traders weren't worried about that mattered most this week, during which major averages stumbled while Treasuries soared. The most-anticipated events heading into the week included Monday's Iraq sovereignty handover (which occurred two days earlier than expected) and Wednesday's Federal Reserve policy decision. While fretting about Iraq and Alan Greenspan, most market participants were sanguine about corporate profits, the economy's growth and the downward trend in crude prices. But while the former passed without major upheaval, the latter combined with quarter-end considerations to bite shares on the backside. Following Friday's modest declines, the Dow Jones Industrial Average ended the week down 0.9%, while the S&P 500 lost 0.8% and the Nasdaq Composite shed 0.9%. Most of the damage occurred Thursday and Friday, after the Fed's widely expected decision to raise rates by 25 basis points. Rather than any disappointment with the Fed, traders said the post-FOMC declines were mainly a function of quarter-end considerations and renewed concerns about the economy's health, along with analyst downgrades of big-cap names such as Yahoo! ( YHOO) and Intel ( INTC). The second quarter was a positive one for equities; the Dow was virtually unchanged but the S&P 500 gained 2.6% and the Nasdaq 2.7%. Fund managers focused on quarterly performance, thus had incentives to keep shares afloat through Wednesday; selling thereafter was likely magnified by the unwinding of such quarter-end window-dressing. "The last few days prior to Wednesday , including last week, there was a lot of reallocation of assets," said Scott Curtis, managing director of equity trading at Kinetics, who declined to discuss his firm's positions. "For people who mark up portfolios to show holders they were in the right groups, they sell those positions" after the quarter ended. The "right" groups included sectors that outperformed in the second quarter, including energy and utilities; conversely, there was selling of poor-performing groups such as precious metals, homebuilders and semiconductors. In addition, there was buying interest in the quarter's best-performing names such as Research In Motion ( RIMM) and Genentech ( DNA).