Stock prices tumbled again yesterday on concern that the market turmoil in south-east Asia may be causing problems in Latin American and other markets. In the broader market, declining issues outnumbered advances by nearly three-to-one in heavy volume of 712 million shares on the New York Stock Exchange.
The technology-laden Nasdaq composite index sank 32.33 points, or 2 per cent, to 1,570.42. "Technology stocks are getting hurt because of concerns about their sales exposure in Asia and there is also concern about Brazil, because it's rumoured that it's the next target of the currency speculators," Mr Brad Weekes, managing director of equity trading at Donaldson Lufkin & Jenrette said.
Financial stocks were among the hardest hit. J.P. Morgan lost $3 7/8 to $110 3/8, Citicorp fell $4 3/8 to $125 1/8 and Chase Manhattan was down $4 1/2 to $115 1/3
Bonds were higher, as investors ran for safety. The 30-year Treasury rose three-quarters of a point, or $7.50 on a $1,000 bond, lowering its yield to 6.15 per cent from 6.21 per cent on Wednesday.
The Standard & Poor's index of 500 stocks fell 15.47 or 1.7 per cent to 903.69.
Much attention in the US market turned to Brazil where policy-makers were hustling to defend the local currency and allay fears the nation would become the next emerging economy to plunge into crisis. Brazilian stocks plunged more than 8 per cent, driven down by talk that local brokerages suffered steep losses in this week's market turmoil.
