Blue chips sent into a tailspin
BLUE chip stocks went into a tailspin yesterday, losing nearly 75 points by the closing bell at the end of a turbulent trading session sparked by an unsettled bond market.
The Dow Jones Industrial Average at close was down 70.73 points at 6,402.52.
Reversing two days of healthy gains, the Dow plunged in early morning deals, plummeting by as much as 129 points before midday.
Stock prices were affected by general market nervousness triggered in part by the reported comments of prominent investments banker, Mr Robert Hormats.
He was quoted in the Wall Street Journal as warning that Japanese institutional investors might be losing their appetite for US Treasury securities.
Bond prices also weakened on the comments.
Dealers said the stock market was also jittery in response to reports - denied by the company - that IBM might be about to issue a profit warning.