A report showing consumer confidence at a four-year low sent technology stocks tumbling in New York yesterday over fears about the economy and the Federal Reserve's ability to reverse its decline.
The sell-off also reflected Wall Street's worries that the data might not be weak enough to persuade the Fed to cut interest rates before its March 20th meeting, a move many investors have anticipated.
The Dow Jones industrial average fell 9.71 to 10,632.82, keeping most of the 200-point gain it racked up on Monday on speculation that an interest rate cut was imminent. Tech stocks remained under pressure as investors punished stocks they feared would perform poorly in a weak economy.
Some of the biggest losers were JDS Uniphase, which tumbled $4.81 to $27.81, and Cisco Systems, which fell $2.06 to $24.
The Dow was also hurt by losses in its technology components, including IBM, off $2.71 at $102.59, and Hewlett-Packard, down $1.40 at $28.60.
Blue chips fared better. Tobacco maker Philip Morris rose $1.76 to $48.26., but banker JP Morgan Chase fell 95 cents to $47.60. ExxonMobil dropped $1.50 to $82.30.
