Stocks fell yesterday after new data showing strength in the economy curbed expectations that the Federal Reserve would continue aggressively to cut interest rates to beef up growth. But technology stocks again showed resilience to bad news from top tech companies, and finished only with modest losses.

The Nasdaq composite index ended down 15.07 at 2,625.50 snapping a three-day winning streak. The Dow Jones Industrial average fared worse because of its heavier inclusion of stocks closely tied to the economy and interest rates.

Gateway fell $1.80, or 7.9 per cent, to $21.10 after it reported late Thursday profits that were less than one-third the expected level and also warned of lower first-quarter sales. Hewlett-Packard, a Dow stock, fell $1.69, or 5.2 per cent, to $30.69 after saying it expected earnings would fall short of expectations, blaming the economic weakness and customer demand.