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NEW YORK — A brief surge of enthusiasm evaporated on Wall Street Thursday, gradually pulling stock prices lower in what turned out to be another lackluster session. Blue chips fell into losing ground in the last half hour of trading, while technology issues stumbled earlier on a profit warning from Gateway. 

Stocks initially had a healthy, widespread advance on news that the economy grew by a stronger-than-expected rate in the fourth quarter. An uptick in business activity in the Chicago area also prompted strong buying. 

But the market repeated a now-familiar pattern of retrenching whenever it climbed to a point where investors believed it would be prudent to cash in their profits. 

So the Dow Jones industrial average closed down 21.45, or 0.2 percent, at 10,106.13, having risen as much as 111 in the first hour. The Dow’s moves mirrored those of Wednesday, when it surged nearly 140 points on positive comments from Federal Reserve Chairman Alan Greenspan, then closed up a slim 12.32. 

The broader market also finished lower Thursday. The Standard & Poor’s 500 index declined 3.16, or 0.3 percent, to 1,106.73, while the Nasdaq composite index fell 20.39, or 1.2 percent, to 1,731.49. 

For much of the session, there was modest buying activity pegged largely to a Commerce Department report on the gross domestic product. GDP rose at an annual rate of 1.4 percent in the final three months of 2001, surpassing analysts’ expectations for a 0.9 percent increase. 

The Purchasing Management Association of Chicago also had positive news, saying its index of area business rose to 53.1 percent in February on a seasonally adjusted basis from 45.1 in January. A reading above 50 indicates expansion in the manufacturing sector and a reading below 50 signals a contraction. 

The Chicago survey is considered a reliable forecast of the index of the Institute for Supply Management, formally the National Association of Purchasing Management, which is due to be released Friday. 

But Wall Street’s response, from enthusiastic to uninspired, was similar to Wednesday’s trading, when stocks advanced strongly after Fed Chairman Greenspan told Congress the recession is nearly over, although the economic recovery won’t be particularly robust. Stocks later lost most of those gains. 

Analysts attributed the market’s inability to sustain an advance to an economic recovery that will likely be slow. 

“I think Mr. Greenspan underscored the whole thing. He talked about moderation. The economy is coming out of the recession, but it is not vigorous,” said Larry Wachtel, market analyst at Prudential Securities. 

Prospects of a robust turnaround would likely prompt investors to buy up riskier tech shares, Wachtel said. Instead, tech continues to slump as companies put off orders for new computer and networking equipment. 

“Capital spending is certainly not vigorous, which is why the Nasdaq is down. I see no signs that companies are spending on telecommunications, software or technology,” Wachtel said. 

The tech sector declined on a first-quarter profit warning from Gateway, which fell 50 cents to $4.60. 

Other tech losses came from Dow industrial Intel, down $1.34 at $28.55, and Dell Computer, off 58 cents at $24.69. 

The Dow’s earlier advance was crushed by Disney, which fell $1.25 to $23, and 3M, which stumbled $1.07 to $117.93. But Honeywell rose 97 cents to $38.12. 

Another contributor to Wall Street’s cautious mood has been investors’ worries about corporate bookkeeping practices in the wake of Enron’s collapse. 

“There are two competing forces now. One is the economy is stabilizing, and that is good. The negative is there is still a great deal of concern about corporate governance and accounting,” said Arthur Hogan, chief market analyst at Jefferies & Co. 

Advancing issues narrowly outnumbered decliners 8 to 7 on the New York Stock Exchange. Consolidated trading volume was light at 1.68 billion shares, just below Wednesday’s 1.69 billion. 

The Russell 2000 index, which measures the performance of smaller company stocks, fell 3.25, or 0.7 percent, to 469.36. 

Overseas, markets were mostly higher Thursday with Japan’s Nikkei stock average finishing up 0.1 percent. In Europe, France’s CAC-40 closed up 0.9 percent, Britain’s FT-SE 100 fell 1.5 percent, and Germany’s DAX index gained 1.6 percent. 

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