Stocks fell modestly in New York yesterday, steadying from the wild gyrations of recent days, but extending a sharp retreat from record highs set less than two weeks ago.

On Wall Street, the Dow Jones industrial average fell 19.82 - or 0.2 per cent - to 8,914.96, the lowest finish in more than a month and 423 points below the closing record of 9,337.97 set just eight sessions earlier on July 17th.

While an early 66-point surge above 9,000 quickly unravelled, the swing was hardly as drastic as those of the prior two sessions.

On Tuesday, the Dow twice plunged to losses of about 200 points before finishing 93 points lower.

The sell-off came amid news that Monica Lewinsky, the former White House intern, had been given immunity from indictment in exchange for testimony in Kenneth Starr's investigation of her relationship with President Clinton. Investors bristled at the added uncertainty from Washington.