Retired Oil Baron
Joined: 14 Oct 2002
|Posted: Thu Feb 05, 2004 11:50 am Post subject: Nasdaq drops 2.5%
|Uncertainty among investors pushed stocks lower in volatile trading, with networker Cisco Systems' tentative spending outlook hitting technology shares hard.
Wall Street continued the week's sideways trading, with blue-chip shares showing greater strength than more speculative tech and small-cap stocks as cautious investors move to defensive positions.
As the earnings season winds down, some analysts say the market may be headed for a pause, but despite Wednesday's tech selling, investors don't seem ready to pull out in large numbers yet.
'Today, there's a lot of indecision. This market is as wimpy as I've seen in a long time,' said Brian Belski, market strategist at Piper Jaffray. 'But there's a lot of pent up of buying demand, lots of inflow into the market, so I tend to think it's too early to jump on the correction bandwagon.'
The Dow Jones Industrial Average finished down 34.44 points, or 0.3%, at 10,470.74. The broader gauges were also lower. The Nasdaq tumbled 52.07, or 2.5%, to 2014.14. The Standard & Poor's 500 index lost 9.51, or 0.8%, to 1126.52.
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