NEW YORK >> Mounting concerns about accounting scandals and the health of the nation's businesses prompted investors to again sell stocks sharply lower today. The high-tech dominated Nasdaq composite index finished under its-post Sept. 11 closing low, while the Dow Jones industrials tumbled 130 points. Nasdaq falls below
post-Sept. 11 closeAssociated Press
The Nasdaq also reached its lowest close in five years.
Skittish investors ignored an upbeat report about the nation's manufacturing activity, focusing instead on negative company news as they await the next round of corporate earnings reports to get a clearer picture of how businesses are faring.
"There is an overall distrust of Wall Street and so people are ignoring the economic data," said Brian G. Belski, fundamental market strategist at US Bancorp Piper Jaffray.
Declining issues outnumbered advancers by a margin of more than 3 to 1 on the New York Stock Exchange, where volume was heavy. The Dow fell 133.33, or 1.4 percent, to 9,109.93, staying about 840 points above its post-Sept. 11 closing low.
The broader market also dropped sharply. The Nasdaq fell 59.38, or 4.1 percent, to 1,403.83 -- below its post Sept. 11 low of 1,423.19 on Sept. 21. It was the lowest close for the index since June 10, 1997, when it finished at 1,401.69.
The Standard & Poor's 500 index dropped 21.17, or 2.1 percent, to 968.65, less than 3 points above its Sept. 21 close. The Russell 2000 index fell 14.92, or 3.2 percent, to 447.73.
The price of the Treasury's 10-year note was up 5/32 point today, while its yield fell to 4.78 percent from 4.81 percent late Friday. Two-year Treasury notes gained 3/32 point and yielded 2.76 percent, down from 2.82 percent late Friday.
Overseas, Japan's Nikkei stock average finished Monday down 0.3 percent. In Europe, Germany's DAX index fell 0.4 percent, France's CAC-40 fell 0.02 percent, and Britain's FTSE 100 rose 0.6 percent.