The Nasdaq composite index fell to its lowest level in more than a year in New York yesterday after the Federal Reserve indicated it was worried about the slowing economy, but declined to cut interest rates.

In a sell-off ignited by intensifying fears of weak corporate profits and possible economic recession, investors reversed course from their earlier buying spree driven by speculation the Fed would cut rates.

Tech and blue chip stocks tumbled as the market's focus returned to earnings and the economy.

The Nasdaq fell 112.82 to 2,511.70, its lowest level since August 1999 and the index's sixth straight losing session.

The Dow closed down 61.05 at 10,584.37, after gaining as much as 139 points earlier in the session.

The Standard & Poor's 500 index fell 17.14 to 1,3305.60. Trading was heavy and extremely volatile after the Fed announcement, which cut short a morning rally in technology and what would have been the second straight session of blue chip gains.