Stocks fell sharply yesterday with technology shares taking a beating as worries about the economy and anthrax scares in Washington and New York overshadowed earnings news that offered hope for a less gloomy corporate profit picture.
The market got an initial boost after IBM and Intel posted solid results.
However, news that congressional buildings will be screened for environmental hazards amid deepening fears of biological warfare quashed the rally.
IBM managed to hold onto a gain of $1.05 to end at $102.90, but Intel fell 39 cents to $24.57 as investors shunned the computer chip sector.
The Philadelphia Stock Exchange's semiconductor index fell more than 7 per cent.
On the economic front, the picture appeared gloomier after chief White House economic aide Mr Lawrence Lindsey said it was likely the US economy will log two quarters of negative growth - what is technically defined as a recession.
