FEARS about further interest rate rises prompted a massive sell off in US stocks yesterday. The Dow Jones Industrial Average fell 140 points to 6740.59 or 2 per cent. Blue chip share prices on the New York Stock Exchange were down 145.40 points to 6,735.30 at the closing bell.

A sharp late afternoon sell off, which saw the Dow Jones Industrial Average down 215 points a quarter of an hour before closing, lost momentum in the final minutes. Dealers said robust bond yields had induced investors to "re allocate" their assets to long term securities.

In addition, traders feared that strong economic figures could prompt the Federal Reserve to raise interest rates again when its Open Market Committee next convenes May 20th.

The committee approved a quarter point increase at its session on Tuesday.

In Dublin, shares firmed in late trading yesterday with most of the exchange leaders holding on good bid interest.