Stocks fell yesterday with the Nasdaq market registering its biggest weekly loss this year on a steady stream of grim profit forecasts from high-technology companies.
Telecommunications equipment maker Nortel Networks and JDS Uniphase the fiber-optics parts supplier, both warned of disappointing results amid the slowing US economy. The warning, coupled, with fresh government data showing a deteriorating economy, sent the three major indices to seven-week lows.
"Those are the super-hot groups that are now a disaster," said Scott Bleier, chief investment strategist at Prime Charter Ltd. "The stock market took these companies to so many billions of dollars in market value that it would take a miracle to justify their valuations."
For the week, the Nasdaq fell 8.4 per cent - the technology loaded index's worst week of 2001. The Dow dropped 3.2 per cent for the week and the Standard & Poor (S&P) 500 slipped 4 per cent.
Year to date, the Nasdaq is off 17.9 per cent, the Dow is down 1.5 per cent, and the S&P 500 is off 8 per cent.
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