US stocks fell yesterday after investors were driven from equities by Apple Computer Inc.'s earnings warning, the latest ingredient in September's recipe for a bear market.

The Nasdaq composite index fell 105.67 points, or 2.80 per cent, to 3,672.65. Meanwhile, the Dow Jones industrial average closed with a 173.14-point loss, or off 1.59 per cent, at 10,650.92. For the week, the Dow was off 193 points, or 1.75 per cent.

The broader Standard & Poor's 500 Index dropped 21.78 points, or 1.49 percent, to 1,436.51.

Decliners beat advancers by 22 to 19 on Nasdaq, while New York Stock Exchange breadth was barely positive with gainers just outnumbering losers.