NEW YORK, (Reuters):
STOCKS SLID for a second straight day on Wednesday, as rising tensions over Iraq's arms declaration pushed market gauges to month lows, and a loss at chipmaker Micron Technology Inc. pulled shares lower.
The United States moved closer to declaring Iraq in violation of a United Nations disarmament resolution, but US officials said this would not immediately trigger war. The move, though, ratcheted up tensions and led the price of gold to fresh 5 1/2-year highs.
"It's becoming clearer what the United States' stance is going to be. It's pretty clear we're heading down the path of war," said Robert Mikkelsen, managing director of institutional sales and trading at The Advest Group Inc. "I think the market's pretty spooked."
The technology-laced Nasdaq Composite Index closed at a month low, beaten down by Micron, and the two other market gauges slid to month lows during the session. Micron fell 23 per cent to $10.22.
The Dow Jones industrial average closed down 88.04 points, or 1.03 per cent, at 8,447.35, according to the latest market figures. The broader Standard & Poor's 500 Index was down 11.87 points, or 1.31 per cent, at 891.12. The technology-laced Nasdaq Composite Index was down 30.55 points, or 2.19 per cent, at 1,361.50.
