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Dow falls 120;
Bloomberg News
Nasdaq loses 5.9%NEW YORK -- U.S. stocks fell, led by Qualcomm Inc. and Oracle Corp., on concern their share prices underestimate the impact of rising interest rates on economic growth and profit.
The Nasdaq composite index fell for a fifth day, dropping 199.66 points, or 5.93 percent, to 3,164.55. The Dow Jones industrial average dropped 120.28, or 1 percent, to close at 10,422.27.
The Standard & Poor's 500 index fell 26.86, or nearly 2 percent, to 1,373.86.
"I don't think we've hit a bottom," said Peter Landini, chief equity strategist at Fremont Investment Advisors. "It's been said that tech-company stocks don't react directly to interest rates because they have less debt, but higher rates will slow the growth of their clients who will then spend less on technology."
Decliners beat advancers by a 6-to-5 margin on the New York Stock Exchange, with 1,576 down, 1,336 up and 487 unchanged. NYSE volume totaled 866.51 million shares vs. 868.63 million yesterday.
The NYSE composite index dropped 4.64 to 630.28; the American Stock Exchange composite index sank 14.33 to 889.30; and the Russell 2000 index dropped 12.66 to 459.01.
The 30-year bond rose 11/32 point, or $3.44 per $1,000 security, driving its yield down 2 basis points to 6.16 percent.
The 10-year note rose 1/32 point, pushing its yield down 1 basis point to 6.43 percent. The U.S. two-year note's yield fell 1 basis point to 6.8 percent.