Stocks fell yesterday, but the losses were a small fraction of Monday's historic tumble, as investors were unwilling to mark up prices in the second trading day in a "New Age" of economic and military uncertainty.

The Nasdaq composite dropped 24.47 points to 1,555.14 while the Standard & Poor's 500 fell 6.01 points to 1,032.76.

"People are looking to respond to what the market is doing so I don't think they are willing to take any big bets right now," said Peter Gottlieb, portfolio manager at First Albany Asset Management in Chicago.

The losses come one day after stock markets reopened following a four-day hiatus, the longest since the Depression, due to attacks on the World Trade Centre and the Pentagon.

The selloff on very heavy trading volumes, moved the major market indices deeper into the red, nearer three-year lows. The market spent much of the day higher, buyers turned scarce in the final two hours of business.