The Hindu : U.S. stocks fall on investor fears of prolonged war

Online edition of India's National Newspaper
Tuesday, Mar 25, 2003

Business

Business

U.S. stocks fall on investor fears of prolonged war

NEW YORK MARCH 24. Wall Street pulled back sharply Monday, sobered by the realisation that war with Iraq may be more difficult than investors had hoped. The Dow Jones industrials fell more than 190 points. Many investors chose to cash in profits following a stunning eight-day rally by the Dow and Standard & Poor's 500 index, their best performance in years.

In early trading, the Dow was down 196.15, or 2.3 per cent, at 8,325.82, having gained 8.4 per cent last week, its best showing since October 1982. The blue chips advanced in the previous eight sessions, their longest streak since December 1998. The broader market was also sharply lower Monday. The S&P 500 index dropped 19.70, or 2.2 percent, to 876.20, after a weekly gain of 7.5 per cent. The index also has posted eight straight days of gains, its best performance since June 1997. The Nasdaq composite index lost 33.07, or 2.3 per cent, to 1,388.77, having advanced 6.1 per cent last week. It rose in six of the previous eight sessions. Stocks surged in the past two weeks on growing investor confidence in a brief and victorious war, but analysts have said that would quickly change should the conflict become prolonged. They also say trading will likely be choppy as investors focus on the latest war developments.

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