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U.S. market rally runs out Wednesday

NEW YORK, March 19 (UPI) -- U.S. stock indexes dropped sharply Wednesday as the rally from Tuesday's U.S. Federal Reserve rate cut failed to last.

The Dow Jones industrial average declined 2.36 percent by close of trading and hit 12,099.66 points on loss of 293.00 points. The Standard & Poor's index dropped 32.32 points, a loss of 2.43 percent, ending the day at 1,298.42 points. The Nasdaq composite index lost 58.30 points, to 2,209.96 points, a 2.57 percent drop.

On the New York Stock Exchange 934 stocks advanced while 2,231 declined on a volume of 1.973 billion shares traded.

The 10-year U.S. Treasury note gained 1 11/32 to yield 3.343 percent.

The dollar was mixed. The euro traded at $1.5616 from $1.5636 Tuesday, while the dollar traded at 98.89 yen from 99.56 yen Monday.

In Tokyo, the Nikkei index also advanced Wednesday, up 296.28 points to 12,260.44 points, up 2.48 percent.

In London, the FTSE 100 index closed down 0.25 percent to 5,591.70 points, down 14.10 points.

Gold prices prompt trips to jewelry boxes

DENVER, March 19 (UPI) -- The soaring price of gold, reaching a record $1,035 an ounce Monday, has sparked a selling spree of jewelry, medals, medallions and even dental crowns.

"I didn't need to sell but I saw it on the news, and I figured 'Why not?' " said a Denver woman at a jewelery store who had just sold some gifts from an old boyfriend for $275.

The run on gold in commodities markets has caused a run to the attic and jewelry boxes for valuable trinkets, The Denver Post said Wednesday.

The run hasn't been limited to small items. "It's been nonstop on the telephone for our brokers since 4 a.m. most days," Peter Grant, senior metals analyst at USA Gold, told the newspaper.

"It's the full gamut of buying, from a single ounce to major, major purchases," he said.

Analysts said the selling spree will continue, although gold prices dropped to $943.50 on the New York Mercantile Exchange Wednesday.

Bank of England steps in to stop run

LONDON, March 19 (UPI) -- The Bank of England announced Wednesday that the Halifax Bank of Scotland wasn't in crisis, hoping to thwart a run on the bank.

The Halifax bank issued a statement commending the Bank of England's move, saying it "would not tolerate market participants committing abuse by spreading false rumors."

The statement was aimed at "short-sellers," who make money on bets that share prices will decline, the Daily Mail reported.

The statements provided a boost in the bank's share value Wednesday after early trading showed signs the bank was in trouble.

British authorities said they would look into the matter.

The drama -- from an early morning sell off of bank shares to the Bank of England's call to news agencies at 10:15 a.m. to a Financial Service Authority announcement that it would probe suspicious trading -- took less than three hours, the newspaper reported.

In a separate statement, an angry Halifax Bank of Scotland spokesman called the rumors "completely malicious," the Daily Mail said.

Bank turns to counselors after collapse

NEW YORK, March 19 (UPI) -- Investment bank Bear Stearns has hired professional counselors to help its Wall Street employees weather the storm of the bank's collapse.

The bank's 14,000 employees saw their fortunes fall last week as a run on the bank led to its fire-sale last weekend.

Many of the employees will be left without jobs and the average $200,000 retirement nest egg for a bank employee is now worth $2,000, ABC News reported.

Employees, which include young financiers who just moved New York, secretaries with families and middle aged, mid-level managers, might experience depression, raised anxiety levels and other symptoms of trauma.

"Hearing that you've lost everything and may be out of a job on the news would be a blow to anybody," said John Maynard, chief executive officer of the Employee Assistance Professionals Association.

The bank didn't comment on how many counselors it had hired.