Stocks on Wall Street Stocks sank last night as uncertainty over war and a string of corporate profit warnings knocked the blue-chip Dow to a closing low not seen since early October.
The Dow Jones industrial average shed 101.61 points, or 1.31 per cent, to 7,673.99, near its session low at 7,659.09. The broad Standard & Poor's 500 Index fell 7.75 points, or 0.93 per cent, to 822.10. The Nasdaq dropped 11.48 points, or 0.87 per cent, to 1,302.92.
The Dow is now down almost 8 per cent for the year.
Higher-than-expected weekly jobless claims reignited worries that a economic recovery is still far off, although news that factory orders grew by a surprising 2.1 per cent in January cushioned the blow slightly.
Profit warnings from defence contractor Raytheon, drugmaker Schering-Plough and poultry and beef processor Tyson Foods also dampened the market's mood.
But it was the prospect of a US war with Iraq that preoccupied investors most, traders said.
"People do not want us [the United States] to have to go it alone and that hurts the market," said Mr Anthony Iuliano, head equity trader for Glenmede Trust.
Weak February retail sales also briefly sparked concerns that consumer spending - vital to US growth - may be buckling.