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Dow off 201.58;
Associated Press
Nasdaq falls 92.85NEW YORK -- A fragile advance by technology stocks shattered today as weakness in the blue-chip Dow Jones industrials spread to the broader market. Stocks came under pressure after a report on wholesale inflation raised fears about the economy.
The Nasdaq composite index fell 92.85, or nearly 2.5 percent, to close at 3,676.78, bringing its loss for the week to 769 points. The index had risen as much as 145 points earlier before collapsing in the final hour of trading. The Dow plummeted 201.58, or 1.8 percent, to close at 10,923.55, its steepest point drop since March 7. The Standard & Poor's 500 fell 26.66, also 1.8 percent, to 1,440.51.
Decliners led advancers by an 11-to-8 margin on the New York Stock Exchange, with 1,706 down, 1,256 up and 478 unchanged. NYSE volume totaled 1.036 billion shares vs. 1.14 billion yesterday.
The NYSE composite index fell 9.64 to 644.61; the American Stock Exchange composite index sank 11.56 to 915.23; and the Russell 2000 index lost 4.22 to 489.22.
The 30-year bond rose 10/32 point, or $3.121/2 per $1,000 security; its yield fell to 5.79 percent from 5.81 percent late yesterday.
Today's loss left the Nasdaq 27 percent below its March 10 closing record of 5,048.62. Wall Street professionals consider a 20 percent drop from a peak the traditional touchstone of a bear market.
"Technology stocks are clearly in a bear market." said Eugene G. Mintz, analyst at Brown Brothers Harriman & Co. "The Nasdaq tried to rally two or three times and just couldn't hold it."
Analysts say the most fundamental reason for the drop is a growing sense that investors pushed technology issues too far last year, giving many young, unproven companies stock prices they did not yet deserve.