Gwinnett Daily Post

NEW YORK - Stocks ended a turbulent second quarter with a moderate decline Friday as money managers, doing some last-minute adjustments, locked in gains from Thursday's big rally.

Analysts attributed the selloff to end-of-quarter ''window dressing'' by managers preparing quarterly reports and the annual reconstitution of the Russell 3000 index, in which some stocks were added to the index while others were dropped.

''This was nothing attributed to market conditions,'' said Ryan Larson, senior equity trader at Voyageur Asset Management.

The Dow Jones industrial average closed down 40.58, or 0.36, to 11,150.22. On Thursday, the Dow surged 217.24, its biggest single-day jump since March 21, 2003, when it added 235.37.

Broader stock indicators also fell. The Standard & Poor's 500 index dropped 2.67, or 0.21 percent, to 1,270.20, after Thursday's gain of 26.87, its largest point gain since March 17, 2003.

The Nasdaq composite index fell 2.29, or 0.11 percent, to 2,172.09 after rising 62.54, its largest point gain since July 27, 2002.

Markets rallied Thursday after the Federal Reserve raised rates by a quarter of a percent and seemingly moderated its interest rate policy statement. But the Fed has still promised to keep a close eye on economic data.

The University of Michigan's June consumer sentiment reading came in better than expected, but the government reported consumer spending slowed sharply in May as rising gasoline prices left Americans with less to spend on other items. The Commerce Department said spending rose by just 0.4 percent last month after a 0.7 percent gain in April. Income growth also slowed to an advance of just 0.4 percent last month, reflecting weaker job growth.