Indices slump on `new economy' profit fears

Stocks took another pounding yesterday as the Nasdaq tumbled over about profits for some of the "new economy" shares.

The Dow Jones industrials at the closing bell were down 130.32 (1.21 per cent) at 10,594.60, with the technology-heavy Nasdaq slumping 111.12 (3.20 per cent) at 3,360.98. The broader Standard and Poor's 500 skidded 27.35 (1.90 per cent) to 1,408.93.

The bond market was a safe haven for investors, with the yield on the 10-year bond easing to 5.816 per cent yesterday from 5.854 per cent on Thursday. On the 30-year bond, the yield was 5.845 per cent, from 5.899 per cent. A drop in yields reflects a rising price for bonds.