NEW YORK - US STOCKS ended mixed in volatile trading on Wednesday as the credit rating and outlook of 22 banks were lowered and President Barack Obama unveiled financial regulation reform plans.
The blue-chip Dow Jones Industrial Average fell 6.81 points (0.08 per cent) to 8,497.36 at the close, its third straight day of losses.
The tech-heavy Nasdaq rose 11.88 points (0.66 per cent) to 1,808.06 while the broad-market Standard & Poor's 500 index fell 1.25 points (0.14 per cent) to a provisional close of 910.72.
Market action began on Wednesday after the government reported that US consumer prices edged slightly higher in May after holding steady in April.
The Labour Department said its consumer price index (CPI) rose a modest 0.1 per cent from April, according to seasonally adjusted data.
The price rise was less than most analysts' expectations of a 0.3 per cent gain.
Analysts at Charles Schwab said the market saw the inflation report as 'tame.'
Financial stocks were hit after Standard & Poor's lowered its credit rating and revised the outlook on 22 US banks, citing market volatility and tighter regulatory supervision.
Regional bank stocks were hit following the ratings downgrade, analysts at Briefing.com said.
Mr Obama also unveiled wide financial regulatory reform plans that will see the Federal Reserve gain broad powers and a national bank supervisor created to avoid a repeat of the financial crisis. -- AFP
