Dow Jones: 11,478.13 (–40.72) Nasdaq: 2,620.24 (+15.51) S&P 500: 1,203.66 (–3.59)STOCKS FELL yesterday, halting the biggest Standard and Poor's 500 Index rally over seven days since 2009, following a decline in JPMorgan's profit and concern that equities had surged too much on optimism about the European debt crisis.

The S&P 500 slipped 0.3 per cent in New York, paring its retreat from 1.4 per cent as technology stocks rose.

Gains in chipmakers and computer producers drove the Nasdaq Composite Index up 0.6 per cent.

Google jumped 5.1 per cent after markets closed.

The S&P 500 retreated yesterday after rebounding from last week’s 13-month low, surging 9.8 per cent over seven sessions as growing confidence in Europe’s efforts to fight its debt crisis and improving US economic data alleviated concern about a relapse into a recession.

“I don’t know that the road is completely clear,” James Dunigan, who helps oversee $109 billion as chief investment officer in Philadelphia for PNC Wealth Management, said. “We may be a little bit ahead of ourselves from the rally we’ve seen as far as what that final package in Europe looks like. It’s not going to be easy.”

JPMorgan, the second-largest US bank by assets, slumped 4.8 per cent to help drag down the Dow Jones Industrial Average, which on Wednesday briefly erased its 2011 loss before paring its gain.

Bank of America, which will release results on October 18th, sank 5.5 per cent.

Financial stocks in the SP 500 dropped 2.4 per cent, the most among 10 industries, followed by industrial companies with a 0.9 per cent loss and raw-material producers with a 0.5 per cent slump.

Technology companies in the SP 500 rose 1 per cent as Micron and Nvidia led a rally in chipmakers, advancing more than 5.8 per cent.

Yahoo! gained 1 per cent as KKR and Blackstone were said to be among private-equity firms considering possible bids for the Internet company, according to people with knowledge of the matter.

Stocks fell even as applications for unemployment insurance payments decreased 1,000 in the week ended October 8th to 404,000, Labor Department figures show. – (Bloomberg)