NEW YORK-The S&P and Nasdaq eked out gains in the final minutes of trading yesterday as Egyptian President Hosni Mubarak said he would delegate powers to the vice president, though he stopped short of resigning. The Dow ended slightly lower, breaking an eight-day rally after network equipment maker Cisco Systems Inc gave a weak outlook. The S&P and Nasdaq wavered in volatile late-day action as Mubarak began a speech in response to the weeks of civilian protests. Earlier in the day, as media reports spread that Mubarak might resign, equities rebounded off early lows sparked by the disappointment over Cisco.
"The moment Mubarak said he would be giving up duties to his vice president, the market said it was a good thing and rose," said Michael Holland, who oversees more than US$4 billion as chairman of Holland & Co in New York. "There was an initial reaction that things would be better, but that doesn't seem to be the case," Holland added. Mubarak's speech enraged protesters, who reacted with chants of "Down, down Hosni Mubarak." More than two weeks of civilian unrest in Egypt have created some uneasiness among global investors on fears that political instability could spread through the region and impact commodities. (Reuters)