US shares fall on war jitters

Many traders took the Veterans Day holiday

The major US stock indexes slumped as the Iraqi parliament rejected a new UN resolution on disarmament and a slew of poor corporate news.

The tech-based Nasdaq Composite index dropped 40 points, or 2.95%, to 1,319 while the Dow Jones industrial average of leading US stocks slumped 178 points, or 2%, to 8,358.9.

Iraq's parliamentary speaker Saadoun Hammadi said a new United Nations resolution to disarm Iraq was "provocative, deceitful and a preamble for war" during the start of an emergency session.

The Iraqi position pushed the price of oil higher.

News on the corporate side, including the resignation of the president of Hewlett-Packard, also pulled the markets down.

The broad Standard & Poor's 500 also fell, losing 18 points, or 2%, to 876.

Corporate troubles

Hewlett-Packard was the most traded stock after it announced the departure president Michael Capellas, pushing it down 11% to $14.85.

Software company Oracle fell more than 5% to $9.05 after a Deutsche Bank downgraded.

Energy and utility companies' shares also sank after several companies confirmed they had been issued with subpoenas over their activities in the Californian energy market.

Duke Energy, Mirant Corp and Reliant Resources all slumped.

Volume was thin as traders and investors took the day off for Veterans Day.