News Summary: Wall Street rally fades on Bernanke

Associated Press

BERNANKE DISAPPOINTS: Fed Chairman Ben Bernanke told Congress the central bank was ready to act if the economy needs it, but he did not spell out any immediate steps. Weaker hiring in May and comments by a Fed regional president had led some investors to expect the Fed would make a move.

CHINA CUTS: An early rally in stocks was set off by China cutting its benchmark lending rate for the first time in nearly four years, its latest effort to reverse a slowdown in economic growth.

GOLD FALLS: The price of gold, which since 2009 has often surged as the Fed bought bonds to stimulate the economy, fell almost 3 percent after Bernanke's testimony. Gold fell $46 an ounce, the biggest decline since April, to $1,588.

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