U.S. stock indexes end roller coaster down

New York -- Losses sustained by Fannie Mae and Freddie Mac, combined with inflation concerns, sent U.S. stock indexes into Monday's close with slight losses.

After trading up 111 points in the morning then plunging to 168 points during the afternoon, the Dow Jones industrial average closed down 56.58, or 0.50 percent, at 11,231.96. The Standard & Poors 500 fell 0.84 percent -- 10.59 points -- to 1,252. The Nasdaq composite lost 2.06 points, or 0.09 percent, to finish at 2,243.32.

The market's wild ride was attributed, in part, by a Lehman Brothers report estimating Fannie Mae and Freddie Mac would be forced to raise about $75 billion in capital if a proposed accounting rule change were enacted. During the day, both reported losses of at least 20 percent.

Investors reacted to cautious comments from Janet Yellen, president of the Federal Reserve Bank of San Francisco, The Wall Street Journal reported. She said the risks of inflation have "definitely increased" and the Fed would not allow an upward spiral of prices and wages.

On the New York Stock Exchange, a total listed volume of 5.26 billion shares were traded.

The U.S. Treasury 10-year note was up 17/32 to yield 3.923 percent.

The dollar was trading 1.5720 against the euro. Against the yen, the dollar was at 107.1100.

Britain's FTSE 100 index closed up 1.9 percent to 5,512.70.

Japan's Nikkei 225 close up 0.9 percent at 13,360.04.

Copyright 2008 by United Press International.