NEW YORK, MARCH 15 -- Nagging worries about inflation bogged down Wall Street Tuesday, with investors sending stocks lower as they tried to reconcile solid economic and earnings news, reports of anthrax discovered at the Pentagon, and a gloomy outlook on semiconductor stocks.
Concerns that oil prices, which topped $55 per barrel, would accelerate inflation and lead to rising interest rates eroded investor confidence, and the Pentagon's announcement about an anthrax discovery in its mailroom added to the general unease.
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The tech sector was hit particularly hard after a Merrill Lynch analyst said growth in chip stocks would be stalled for much of the year.
That made it difficult for Wall Street to rise on good news from the retail sector.
While the 0.5 percent growth in February retail sales fell slightly below Wall Street expectations, the Commerce Department revised its January figure upward, and auto sales were surprisingly strong in both months. Record earnings from Lehman Brothers Holdings were likewise discounted by midday, when stocks turned firmly negative.
The Dow Jones industrial average fell 59.41, or 0.55 percent, to 10,745.10.
Broader stock indicators also lost ground. The Standard & Poor's 500-stock index was down 9.08, or 0.75 percent, at 1197.75, and the tech-focused Nasdaq composite index lost 16.06, or 0.78 percent, to 2034.98.
All three major indexes finished at or near their lows for the session.
Lehman Brothers beat Wall Street estimates by 71 cents a share and gained $2.87, to $96.19.
Dow component Intel fell 39 cents, to $23.88, and Advanced Micro Devices lost 37 cents, to $16.07.
