Plummeting internet stocks and oil prices sent Wall Street shares spiralling down 2.32% to close at 9,116,55 after a fall of 216 points.

The Nasdaq technology-laden composite was down 66.85, or 3.32%, at 1,949.59.

Shares of most US oil companies fell sharply as the price of crude oil sank to a 12-year low.

"Profit taking sent stocks lower right from the opening bell," said Hildegard Zagorski, of Prudential Securities.

The high-flying Internet stocks were the biggest losers.

"People just woke up and realised the market may have gotten in front of itself," Mara Glassel, vice president of Equity Focus Group, at Prudential Securities, said.

"Earnings are still not that great and the economy is still having some trouble. Those problems are still with us."

But Joseph Barthel, chief investment officer at Fahnestock & Co., said the overall market sentiment was still robust and that aside from profit-taking and possibly the overseas weakness, there was little driving stocks down.

"It's just a mixed bag with no reasons you can point to at this point," he said, pointing out that the time between Thanksgiving and the new year is typically bullish for stocks.

Internet stocks hit hard

As the price of crude oil sank to a 12-year low of $11.22 a barrel, Internet-related stocks were hit hard.

The software retailer Egghead.com Inc. was down 6-1/8 at 25-1/2, while auctioneer eBay Inc. plunged 20-3/8 to 197-5/8.

Books-a-Million tumbled 9-7/16 to 29-1/4 and ONSALE Inc. plummeted 36-1/8 to 61-1/2.

America Online Inc. was off 7-2/16 at 87-9/16 and Yahoo! Inc. sank 24-15/16 to 192. Amazon.com Inc. lost 24-5/8 to 192.