Stocks tumbled in New York yesterday after Ms Abby Joseph Cohen, one of Wall Street's most famously bullish analysts, recommended that clients shift some of their investments from stock to cash.

Technology shares, which Cohen singled out as having little room for further growth, led the decline.

The Dow Jones industrial average fell 89.12, or 0.8 per cent, to close at 10,936.73.

Broader stock indicators were also lower.

On the Nasdaq, Intel and Sun Microsystems fell. Yahoo! and Amazon.Com also lost ground.

Microsoft, which fell steeply on Monday after the company failed to appease monopoly authorities with an offer to settle, rose. Late on Monday, lawyers received word that the judge in the case would postpone his verdict, allowing for continued negotiations.

Analysts said trading in Microsoft is likely to be highly volatile until a settlement is reached or until District Judge Thomas Penfield Jackson delivers a verdict.