Stocks fell sharply yesterday as more corporate earnings warnings and massive layoffs piled atop deep economic and military uncertainties plaguing investors since last week's air attacks on New York's World Trade Centre and the Pentagon outside of Washington. Selling persisted for a fourth day since the market reopened.

Wall Street, mourning the likely loss of nearly 6,000 people at the Trade Centre just three blocks from the New York Stock Exchange, has pushed the major stock indexes down more than 10 per cent to new three-year lows this week.

The Dow Jones industrial average tumbled 382.92 points, or 4.37 per cent, to end at 8,376.21, the seventh largest point drop ever.

US Federal Reserve Chairman Alan Greenspan told Congress that the attacks will damage the economy in the short-term by making Americans fearful of the future but won't dampen bright long-term prospects.