Nasdaq falls nearly 3%

US technology stocks have resumed their slide as investors collected profits from last week's rally.

The Nasdaq closed down 55.67 at 2,029.12, while the Dow Jones fell 66.94 to 10,472.12, a 0.6% decline.

The Standard & Poor's 500 index was down 13.23, or 1.1%, at 1,202.45, and the Russell 2000 index was down 6.92 at 483.79.

The market's losses deepened as the session wore on despite some good news from Citigroup, and Bank of America, which both released second-quarter results that surpassed analysts' expectations.

Citigroup rose 29 cents to $49.15, while Bank of America gained $1.13 to $61.38.

But those gains failed to offset losses across the broader market on weaker earnings reports or fears of disappointment to come.

Bank of New York dropped $6.40 to $43, a 13% decline, after failing to meet expectations.

Oil service stocks also struggled on worries that exploration and production demands are decreasing, with Halliburton falling $1.75 to $30.40, a 5% loss.

Selling was especially strong in technology, particularly semiconductors stocks. Applied Materials fell $4.41 to $41.95, a 9% drop, amid renewed worries that a recovery for the chip industry may not come until mid-2002.

Declining issues led advancers 3 to 2 on the New York Stock Exchange. Volume was light, coming to 1.03 billion shares, compared with 1.10 billion shares Friday.