A sell-off in technology stocks sent the Nasdaq index plunging almost 5.6 per cent in heavy trading yesterday and more than wiped out a 270-point gain in the Dow Jones industrial average.

On Wall Street, the Dow Jones industrial average ended a five-day string of record highs, falling 53.36 points to close at 10,440.53. At early afternoon, the Dow had surged up 271.85 points to reach 10,765.74.

At the close of trading on Wall Street, the technology heavy Nasdaq composite was down 138.43 points at 2,345.61. The only time the technology heavy index had a steeper one-day point drop was the 140.43-point pummelling of August 31st, 1998. The NYSE composite index fell 9.02 to 615.88, and the American Stock Exchange composite index declined 10.30 to 735.11.