NEW YORK - Stocks were mixed Monday in cautious trading on the eve of the Federal Reserve's decision on interest rates. Technology stocks fell early, then regained ground, while blue chips and most bank issues rallied.
The American Banker index of 50 large banks rose 2.36%. Its index of 225 banks rose 2.52%, to 683.5.
Among widely traded bank stocks, Citigroup Inc. was up $2.6875, or 4.47%, to $62.875; Chase Manhattan Corp. $3, or 4.19%, to $74.625; and J.P. Morgan & Co. $1.50, or 1.15%, to $132.
The Dow Jones industrial average was up 198.4 points, or 1.87%, to 10,807.8. The Nasdaq index rose 78.6 points, or 2.23% to 3,607.6.
Most analysts expect the Federal Open Market Committee to increase the federal funds rate a half-point, to 6.5%, though some maintain that the central bank will keep up its string of milder quarter-point increases.
Consumer price data from April, due out today, are seen as possibly influencing the decision. If the numbers are benign, it could suggest a quarter-point increase.