U.S. markets fall on bailout passage

NEW YORK, Oct. 3 (UPI) -- U.S. stock indexes turned counter-intuitive Friday, falling after the U.S. House of Representatives passed a massive bailout package.

President George Bush quickly signed the bill into law, but markets had become inflated early in the day in anticipation of the law and slid, rather than gained, when the bill passed.

By close Friday, the Dow Jones industrial average -- once up 176 points on the day -- was down 1.5 percent to 10,325.38, off 157.47 points. The Standard and Poor's 500 fell 1.48 percent, down 15.05 points, to 1,099.23. The Nasdaq composite index lost 29.33 points, or 1.48 percent, to 1,947.39.

On the New York Stock Exchange,1,095 stocks advanced and 2,044 declined on a volume 7.05 billion shares traded.

The benchmark 10-year U.S. Treasury bond rose 4/32 to yield 3.612 percent.

The euro fell to $1.3792, compared to $1.3794 Thursday. Against the Japanese yen, the U.S. dollar fell to 105.17 yen from 105.22 yen.

In Tokyo, the Nikkei average lost 216.62 points to 10,938.14, down 1.94 percent.

The FTSE 100 index in London rose 2.15 percent, up 104.90 points, to 4,975.20.