The Dow industrials pulled off a sharp turnaround for the third time in four sessions yesterday, but the Nasdaq market fell to a new low for the year as big-name technology stocks extended this week's plunge.

The Dow Jones industrial average gave back an early 115-point gain and slid as much as 113 points before reversing course and closing just 1.29 points lower at 7,741.69. Broader stock indicators suffered heavier losses, with the Nasdaq market taking the biggest hit for a third straight day.

The Nasdaq composite index fell more than 3 per cent, plunging below 1,500 for the first time since the August 31st market selloff. In just three sessions, the Nasdaq has lost 152 points, or 9.4 per cent.