NEW YORK -- Stock prices swung in a wide arc yesterday, ending with a sizable drop on fading hopes of further interest-rate cuts. The Dow Jones industrial average, which posted solid gains earlier in the day, plunged after remarks on the economy by Alan Greenspan, chairman of the Federal Reserve Board.
The Dow ended the day at 3,224.96, down 47.18 points, or nearly 1.5 percent. But that was 74 points shy of the day's high, the biggest one-day spread since a 120-point swing on Nov. 15, 1990, when the market unraveled during a period when futures and options were expiring.
The morning began in weakness as foreign investors sold and disappeared, but then prices moved up steadily through midday, until Mr. Greenspan, speaking before the Senate Banking Committee, gave the market a large dose of disappointment, traders said.