Dow 10,000 Bulwark Fails, Raising Fears of a Deluge to Follow

SAN FRANCISCO -- The dam broke. The line in the sand was crossed. The "fortress" known as Dow 10,000 tumbled under a second straight frontal assault today. But as the market's version of Rome burned, the "new kingdom" known as the Nasdaq Composite Index was only slightly singed.

Major Indices INDEX CHANGE % VALUE YR TO DATE Dow 230.51 -2.3% 9862.12 -14.2% S&P 500 20.07 -1.5% 1333.36 -9.2% Nasdaq 27.16 -0.6% 4590.49 +12.8% Russell 2000 2.70 +0.5% 556.74 +10.3% TSC Internet 8.45 -0.7% 1176.11 +1.9% TSC New Tech 30 5.00 -0.6% 777.72 +25.8% BOND CHANGE PRICE YIELD 30-Year Treasury 7/32 101 10/32 6.155%

In a veritable repeat of yesterday's session, a fierce battle was waged around Dow 10,000 for much of the day. But unlike the prior day, a final hour "counteroffensive" aimed at keeping the index above the key psychological level failed miserably. After trading as low as 9836.06, the Dow closed down 230.51, or 2.3%, to 9862.12, its lowest close since April 6, 1999. The Dow is now down 15.9% from its Jan. 14 record of 11,722.98.

In sympathy with the Dow, the S&P 500 fell 20.07, or 1.5%, to 1333.36. ...