The market ended slightly lower after another rollercoaster day, as S&P’s downgrade of major bond insurers took a toll on stocks otherwise buoyed by reports of a positive auction by the Fed. The Dow was off 25.20 to 13,207.27 on news Ambac Financial and MBIA would earn downgraded ratings. The Nasdaq climbed 4.98 points to 2,601.01, while the S&P slipped 1.98 to 1,453, MarketWatch reports.
The Fed reported that banks borrowed $20 billion for 28 days at 4.65% on Monday. The first of four planned auctions saw 93 banks bidding for $61.6 billion. But one strategist was underwhelmed, saying the scenario is “much ado about nothing.” Another economist said the auction’s popularity increased chances of further interest rate cuts.