Dow goes into decline as rate rise fears rule

Stock prices plummeted in New York yesterday as fears of rising interest rates gave investors a reason to sell shares and capture gains from last year's spectacular performance. The Nasdaq composite index, the best performer in 1999, suffered its worst point loss in history.

On Wall Street, the Dow Jones industrial average fell 360 or 3.17 per cent to close at 10,997, its fourth-worst decline yet. The blue-chip index had dipped as much as 380 points earlier in the session.

Broader stock indicators also sustained sharp losses.

The Standard and Poor's 500 fell 55.80, to 1,399.42, and the Nasdaq composite index plunged 229.85, to 3,901.30.