Dow falls sharply as investors take profits

Stocks fell sharply in New York yesterday, pushing the Dow Jones industrial average into what some market watchers consider a correction, as investors dumped technology shares to collect profits from their recent rally. The Dow Jones industrial average fell 218.42, or 2 per cent, to 10,425.21.

The blue-chip index is now 11 per cent below its January 14th record. Some analysts consider a drop of at least 10 per cent a correction, which signifies a reversal of a market trend but does not necessarily mark a long-term change.

Broad indexes also fell sharply.

The Standard and Poor's 500 fell 29.72, or 2.1 per cent, to 1,387.11, and the Nasdaq composite index fell 89.40, or 2 per cent, to 4,396.23.

Declining issues outnumbered advancers by a 2-to-1 margin on the New York Stock Exchange.