Stocks slumped yesterday after a trio of telecoms heavyweights told investors a return to profitability will take longer than previously expected, news that weighed on the technology sector and drove the broader market to a one-month low.

The Dow Jones Industrial Average lost 128.36 points, or 1.30 per cent, at 9,766.45, while the Nasdaq tumbled 64.85 points, or 3.22 per cent, to 1,946.53. The Standard & Poor's 500 index fell 17.69 points, or 1.56 per cent, to 1,119.38.

Telecoms equipment maker Ciena tumbled 16.86 per cent, or $3.03, to $14.94 and Lucent Technologies sank 15.65 per cent, or $1.21, to $6.52, in heavy trading after warning of weak financial results. Qwest Communications International also cut its growth outlook. It fell 2.48 per cent, or 30 cents, to $11.80.

Also scaring off the bulls was news of anemic retail sales. Last month sales fell by 3.7 per cent as consumer steered clear of auto dealers. The steep drop, which retraced most of October's gain, stoked fears an economic bounce may be further off as consumers tighten their purse strings.