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Wall Street falls sharply, attacks haunt investors

Stocks plunged to unprecedented lows at the resumption of trading on Monday after an eighth interest-rate cut by the Federal Reserve failed to erase fears of recession and turbulence after last week's terror attack tore through the world's financial heart and paralyzed markets for four days.

Wall Street traders, bankers and analysts endured the steep drop after two minutes of silence following the first opening bell of the New York Stock Exchange since hijacked planes toppled the World Trade Center's twin towers last Tuesday. Thousands were missing in the smoking ruins of the 110-story towers just three blocks away from the landmark Big Board building in lower Manhattan.

The technology-laden Nasdaq Composite Index sank 108.35 points, or 6.39 per cent, to 1,587.02. The blue-chip Dow Jones industrial average lost 629 points, at 8,975.52, with many of its 30 components not yet trading but indicated to open lower. The broader Standard & Poor's 500 Index fell 15.26 points, or 1.4 per cent, to 1,077.28. Insurance and airline stocks led the declines.

Resolute traders, many of whom were carrying paper American flags handed out at ferries, still had confidence the market could stabilize later in the session.

The Federal Reserve, acting between its regularly scheduled meetings, cut rates by a half percentage point to 3 percent from 3.50 percent to prop up the struggling US economy.

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