Stocks fell Thursday after the Federal Reserve said it would keep to its policy of raising interest rates at a "measured" pace.

The Fed raised the benchmark rate by a quarter of a percentage point, to 3.25 percent.

The Dow Jones industrial average fell 99.51, or 0.96 percent, to 10,274.97.

Broader stock indicators also dropped. The Standard & Poor's 500-stock index was down 8.52, or 0.71 percent, at 1191.33, and the Nasdaq composite index lost 11.93, or 0.58 percent, to 2056.96.

Oil prices, also a major concern on Wall Street, extended their decline from more than $60 a barrel on Monday. Crude ended trading at $56.50, down 76 cents, on the New York Mercantile Exchange.

Bonds were higher, with the yield on the 10-year Treasury note falling to 3.92 percent, from 4 percent late Wednesday. The dollar was mixed against other major currencies.

With the Fed decision now behind it, Wall Street will look toward Friday's release of June employment numbers, and Fed Chairman Alan Greenspan's upcoming testimony before Congress.

Stocks finished a turbulent second quarter with mixed results, as crude oil futures fluctuated widely and as concerns about inflation and a possible economic slowdown roiled the markets. For the quarter, the Dow lost 2.18 percent, while the S&P gained 0.91 percent and the Nasdaq climbed 2.89 percent as technology stocks gained.

For the year, stocks remain lower. The Dow is down 4.71 percent, the S&P 500 is off 1.7 percent and the Nasdaq has dropped 5.45 percent.


MBNA rose $5.09, to $26.16, on news of Bank of America's acquisition of the credit card company, worth $27.50 per MBNA share.

Bank of America, which said it is likely to take a $1.25 billion restructuring charge, lost $1.30, to $45.61.

Morgan Stanley fell 85 cents, to $52.47, after announcing the return of John J. Mack as top officer.

Boeing rose $4.33 , to $66.00, on the announcement that W. James McNerney, chief executive of 3M, would be its new chairman and chief executive.

3M dropped $3.74, to $72.30.


New York Stock Exchange composite index fell 44.72 to 7217.78.

American Stock Exchange index rose 3.85 to 1544.41.

Russell 2000 index of smaller-company stocks fell 3.10 to 639.66.


NYSE: 2.09 billion shares, up from 1.75 billion on Wednesday. Decliners outnumbered advancers 8 to 7.

Nasdaq: 1.72 billion shares, up from 1.66 billion. Decliners outnumbered advancers 5 to 4.


Crude oil for August delivery: $56.50, down 76 cents.

Gold $435.90 a troy ounce, down from $437.30 on Wednesday.