NEW YORK - Stocks fell sharply after a weak sales outlook from Dell Computer sent the Nasdaq to its lowest close of the year on Saturday.
Wall Street was on edge all week, awaiting the outcome of the presidential election.
The uncertainty - always bad for the stockmarket - was
augmented by investors' worries that the big-growth years for the personal-computer industry might be over.
The tech-rich Nasdaq dropped 171.36 points - or 5.35 per cent - to 3028.99 - its lowest close of the year. The index fell 12.2 per cent for the week and was down more than 25 per cent for the year.
The sell-off was broad and three stocks fell for each one that rose.
The Dow Jones dropped 231.30 points - or 2.13 per cent - to 10,602.95, weighed down by weakness for computer-makers such as IBM.
The blue-chip index closed 2 per cent lower for the week, and was almost 8 per cent lower for the year.
The broader Standard and Poor's 500 closed 34.16 points - or 2.44 per cent - weaker, at 1365.98.
Once the elections are out of the way, stocks could rally, especially if the Federal Reserve leaves interest rates alone at its meeting this Thursday, analysts said.
Thin trading exaggerated the market's price moves on Saturday because many banks and Government offices were closed for Veterans' Day.
On Friday Dell cut its sales growth for the coming year to 20 per cent, much lower than its historical growth rate.
That overshadowed a 40-per cent rise in quarterly profits.
The number two PC-maker dropped 18 per cent to $US23 ($55.32).
Other computer-makers also suffered, including IBM - down $US6 7/16 to $US93 - and Hewlett-Packard - down $US3 13/16 to $US39 1/8.
Compaq - the most active on the NYSE - closed $US1.41 lower at $US25.70.
The world's top computer chip maker, Intel, was caught in the downdraught, down $US4 3/8 to $US37 after Morgan Stanley cut its rating and cited weak PC demand.
In London, the sharemarket remained static, with the FTSE-100 closing the week at 6400.2 - up 0.2 per cent from 6385.4 the week before.
Only those companies to release financial results - or merger plans - showed any real signs of movement during the week.
The market shrugged at the Bank of England's decision on Friday to hold interest rates at 6 per cent for the ninth month in a row. Equally, a multibillion-pound giveaway - announced by the Government on Thursday in the pre-budget report - did little to stir the London market.
British Telecom received a resounding thumbs down from investors after unveiling plans to split off four major operations and pay off mounting debt. BT shares fell 6.7 per cent to 700p.
But the London Stock Exchange was celebrating after OM Gruppen finally threw in the towel in its bid for the exchange, with the support of only 6.7 per cent of exchange shareholders.
- AGENCIES
NEW YORK - Stocks fell sharply after a weak sales outlook from Dell Computer sent the Nasdaq to its lowest close of the year on Saturday.
Wall Street was on edge all week, awaiting the outcome of the presidential election.
The uncertainty - always bad for the stockmarket - was
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