Technology shares posted more record gains, but most stocks fell yesterday amid fears that Japanese recovery efforts may be derailed by a government shake-up following Sunday's elections.

The Dow Jones industrial average finished about 9 points lower at 9,096 after meandering through the lacklustre session.

Most broad-market indicators also posted slim losses, but the technology-heavy Nasdaq composite index rose to a record high for the fourth straight session. Japanese stocks rebounded from an early slide, rising 1.7 per cent. According to preliminary calculations, the Dow Jones industrial average fell 9.53 to 9,096.21.

The Standard and Poor's 500 rose 0.88 to 1,965.53, less than a point from Wednesday's closing record of 1,166.38.

The Nasdaq composite rose 22.49 to 1,965.53, pushing this year's gain to nearly 400 points, or 25.1 per cent.