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Dow off 38;
Associated Press
Nasdaq sinks 187NEW YORK -- The Nasdaq composite index narrowly averted its worst day in history today, ending a volatile session sharply lower as investors bailed out of technology stocks that have run up sharply in recent months.
The Nasdaq fell 186.78 to close at 4,457.89, a loss of 4.0 percent and its fifth-worst point loss ever. With less than 30 minutes remaining in the session, the Nasdaq was down 289 points before recovering ground as investors guessed the index had reached rock-bottom.
The Nasdaq's plunge carried over to the broader market, dragging the Dow Jones industrial average into negative territory after having risen sharply earlier in the session. The Dow ended down 38.16 at 10,980.56. The Standard & Poor's 500 fell 20.60 to 1,487.96.
Advancers beat decliners by a 6-to-5 margin on the New York Stock Exchange, with 1,556 up, 1,445 down and 457 unchanged. On the Nasdaq, decliners led advancers by a 3-to-1 margin. NYSE volume totaled 1.176 billion shares vs. 1.044 billion yesterday.
The American Stock Exchange composite index fell 4.91 to 995.99; the NYSE composite fell 3.69 to 645.67; and the Russell 2000 index fell 11.43, or 2.1 percent, to 531.57.
U.S. Treasury bonds, meanwhile, had their biggest rally in seven weeks. The 30-year bond rose 1 13/32 points, or $14.06 per $1,000 face amount; its yield fell to 5.88 percent from 5.97 yesterday. The 10-year yield fell 11 basis points to 6.03 percent and the two-year yield dropped 7 basis points to 6.47 percent, in late trading.
Technology stocks have been in a slide since March 10, when the Nasdaq closed at a record high of 5,048.62. Today, several factors derailed the sector, pushing the Nasdaq well into market watchers' definition of a correction -- a reversal of an upward trend.