Tech stocks depress market as investors pocket profits

Stocks dropped yesterday depressed by technology shares, as investors pocketed profits after Wall Street's big run-up.

Trading floors will be thinly staffed because tomorrow is the Thanksgiving holiday. Some traders said investors were already cashing in on their tech-stock profits because the light activity would make buying or selling at a good price more difficult.

The market rose over the past week in a rally fuelled by expectations that the conflict in Afghanistan would end swiftly as the hard-line Taliban's rule crumbled following 45 days of attacks by the United States and opposition Afghan forces.

In less than two months, Wall Street has reclaimed all of the losses suffered in the wake of the September 11th attacks. And Monday's rally dragged the Dow back up into bull market territory, with a gain of more than 20 per cent from its three-year low hit on September 21st.

Expectations for a rebound in the economy and corporate profits next year have underpinned the market. But with signs of recovery still yet to emerge, some analysts questioned whether the market could maintain its upward momentum.