Around the World's Markets: New York

US STOCKS fell for a fourth day as concern that interest rates are headed higher sparked a late-day plunge led by Intel and Internet shares.

The Dow Jones index slumped 123.58, or 1.2 per cent, to 10,531.09. "The major issue is interest rates,'' said one analyst. "Inflation and interest rates are basically anathema to high-priced stocks."

The Nasdaq index, packed with computer-related companies, tumbled 72.77, or 3 per cent, to 2,380.89, and is now down 10 per cent from its 26 April record.