Technology stocks fell yesterday while blue chips posted modest gains amid cautiously selective investing on the eve of the Federal Reserve's meeting to consider yet another interest-rate cut to keep the economy from a recession.

The market has already largely discounted another half-percentage point cut by the Fed today, while some argue recent signs of strength in the US economy make such a move far from a foregone conclusion. The Fed has lowered rates four times this year to reduce business and consumer borrowing costs to reinvigorate US economic growth.

The Dow found some strength from financial services giant JP Morgan Chase, which gained $1.20, or 2.6 per cent, to $47.64 after Goldman Sachs gave the banking powerhouse a "market outperform" investment rating.