Stocks fell yesterday as some nervous investors sought to lock in profits from the previous day's historic rally that followed a surprise rate cut from the US Federal Reserve.

Analysts said the theme of the day was the sell-off of safe haven shares by investors switching into riskier sectors after the rate cut eased some fears over a slowing US economy. Still, concerns over the economic outlook left investors cautious.

The Nasdaq Composite Index fell 50.12 points, or 1.92 per cent, at 2,566.57. Among the big losers was Qualcomm which fell 6.84 per cent. Bucking the trend was Xerox, which rose 16.7 per cent to $6.125. The Dow Jones Industrial Average was down 33.34 points, or 0.3 per cent, at 10,912.41 and the Standard & Poor's 500 was down 14.28 points, or 1.05 per cent, at 1,333.28.