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Wednesday, 11 October, 2000, 21:44 GMT 22:44 UK
Stock market carnage
Traders on the NYSE on Wednesday dealing in Motorola shares as the firm plummets as much as 22%
Traders on the New York Stock Exchange
Technology and telecom stocks have fallen heavily around the world after investors' nerves were frayed by leading firms downgrading their profits estimates.

American technology stocks suffered another pasting, with the Nasdaq composite index closing down 72.05 (2.2%) at 3,168.49 - less than four points above its lowest of the year.

There is fear that there is more bad news to come

US money manager Brian Kirkpatrick
The Dow Jones industrial average closed down 110.61 (1.05%) at 10,413.79, its lowest level since June.

In London, the FTSE 100 closed 130.1 (2.1%) down at 6,117.6 - a level last seen in May - while the particularly hard hit Techmark 100 ended 178.7 (5.2%) lower at 3,440.11.

Tech stock 'massacre'

All over Europe and Asia, stock markets recorded big falls after the US high-tech index, the Nasdaq, slumped 3.4% late on Tuesday.

The German Xetra Dax ended the day 111.52 (1.46%) lower at 6,561.63, while the high-tech weighted Nemax 50 dropped 133.89 to 4356.66.

In Paris, the Cac 40 closed 187.18 lower at 5,956.12 - its lowest since February.

The Nikkei 225 in Tokyo fell 1.98%, or 314.15, to close at 15,513.57, an 18-month low.

The Hong Kong, Singapore and Taiwan markets fell by more than 2%, while the South Korean market recorded a 5% decline.

Mixed results

Even buoyant results from chip designer Arm Holdings could not stem the tide, as the firm's stock fell 16 pence to close at 670p.

A profits downgrade late on Tuesday in the US by telecoms equipment maker Lucent Technologies hit chip-makers, software firms, internet service providers and telecoms equipment companies.

Lucent's bad news, its third downgrade this year, came after the US markets had closed.

In trading on Wednesday, Lucent's share price fell 32% to $21.25.

Motorola, which also issued a profit warning, lost 19% to $21.44, while Yahoo, which had posted better than expected third-quarter results, still lost 21% to close at $65.4.

Brian Kirkpatrick, a money manager with Omaha, Nebraska based Bridges Investment, which oversees $1.3bn in assets, said: "Everyone is looking for the leaders like Cisco Systems to be hammered with everybody else."

This, some analysts say, could be taken to signal that the tech stock shake up had bottomed out.

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