Interest rate concerns rout economic optimism

Stocks ended sharply lower in New York yesterday, wiping out early gains, after continued concerns about interest rates and Internet stocks outweighed a sign of continued optimism about the US economy.

At the close of trading on Wall Street, the Dow Jones industrial average was down 123.58, or by 1.2 per cent, at 10,531.09. The index of blue-chip stocks had surrendered a gain of nearly 100 points earlier in the session.

Broader stock indicators were also lower. The Standard and Poor's 500 fell 22.25 to 1,284.40, and the technology-heavy Nasdaq composite index dropped 72.77 to 2,380.89.

Declining issues outnumbered advancers by a 7-to-4 margin on the New York Stock Exchange, with 1,941 down, 1,089 up and 534 unchanged.

NYSE volume totalled 816.27 million shares, against 734.99 million in the previous session.