Stocks fell sharply in New York yesterday, pulling the Nasdaq composite index down 190 points, as disappointing revenue figures from Nortel Networks reawakened the market's worries about earnings.

Nasdaq fell 190.20, or nearly 5.6 per cent, to close at 3,229.59.

The Dow Jones industrial average closed down 66.59, or 0.6 per cent, at 10,326.48. The Standard and Poor's 500 index fell 33.23, or 2.4%, to 1,364.90.