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Article: New Economy Firms' Stocks Are Bludgeoned After Technology Spending Prediction.(Knight Ridder/Tribune Business News)
- Article from:
- Knight Ridder/Tribune Business News
- Article date:
- December 20, 2000
- Author:
CopyrightCOPYRIGHT 2000 Knight-Ridder/Tribune Business News. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Dec. 21--The stock prices of New Economy companies were pounded again Wednesday, after two leading brokerage firms predicted that major U.S. corporations will slow down their spending on technology sharply next year.
This could spell further bad news for the sales and profits at Silicon Valley companies if the spending cutbacks target their products. And it could indicate that the New Economy may be in for a lot more trouble than some investors had assumed.
On these worries, the tech-heavy Nasdaq composite index dropped 178.93 on Wednesday, or 7 percent, to 2,332.78. In just one month, the tech-heavy Nasdaq composite index has lost 23 percent -- the ...