Stocks slumped yesterday as investors were jolted by a new batch of bleak corporate earnings forecasts, including a bombshell from Britain's Marconi that its profits would be halved this year.

The announcement from the leading telecommunications equipment maker hit related technology stocks worldwide. But investors returning from the US Independence Day holiday, which closed financial markets on Wednesday, got more bad news from retailer Federated Department Stores and other companies.

Tech heavyweights, including Web gear giant Cisco Systems, led the Nasdaq Composite Index to a loss of 60.60 points, or 2.83 per cent, at 2,080.20. Nasdaq, which logged its fourth down session in a row, saw nearly two stocks fall for each gainer.

The blue chip Dow Jones Industrial Average closed d own 91.25 points, or 0.86 per cent, at 10,479.86 and the broad Standard & Poor's 500 Index was 15.20 points lower, or 1.23 per cent, at 1,219.25.