NEW YORK — Stocks spent most of Monday in a funk brought on by cautious comments about the economy from Federal Reserve Chairman Ben Bernanke. Hopes for a compromise on extending unemployment benefits and Bush-era tax cuts erased some of the losses.
The Dow Jones industrial average ended down 20 points, breaking a three-day winning streak. Stock indexes traded in a tight range all day, and volume was light.
Stocks began the day on a sour note on news that Bernanke had told “60 Minutes” the economic recovery is still struggling to become “self-sustaining” without government help.
Bernanke argued that Congress shouldn’t cut spending or boost taxes given how fragile the economy remains. He also said it could take four or five more years for unemployment, now at 9.8 percent, to fall to a historically normal 5 or 6 percent.
Stocks recovered somewhat in the afternoon after President Barack Obama said in a speech he would cede ground to help lawmakers reach an agreement on the tax cuts and unemployment benefits.
The Dow Jones industrial average fell 19.90, or 0.2 percent, to close at 11,362.19. The index had been down as many as 32 points. The broader Standard & Poor’s 500 lost 1.59, or 0.1 percent, to 1,223.12. The Nasdaq composite rose 3.46, or 0.1 percent, to 2,594.92.
Treasury prices rose as investors sought safety.
