New York — Wall Street ended one of its most dreadful years on a down note as investors sent stocks sharply lower Monday to minimize their tax bills.
The selloff seemed an appropriate finish to 2001 for the market, which saw its major indexes lose ground for a second straight year their worst performance in nearly three decades.
But despite the yearend decline, analysts said investors, holding on to the optimism that marked trading in recent weeks, were already focusing on next year.
"2001 was a year to forget and 2002 is a year to look forward to," said Alan Ackerman, market strategist with Fahnestock & Co.
The Dow Jones industrial average closed down 115.49, or 1.1 percent, at 10,021.50.
Broader stock indicators also fell. The Standard & Poor's 500 index lost 12.94, or 1.1 percent, to 1,148.08, while the Nasdaq composite index dropped 36.86, or 1.9 percent, to 1,950.40.
For the year, the Dow dropped 7 percent, the Nasdaq lost 21 percent and the S&P fell 13 percent. The last time all three indexes fell for two consecutive years was in 1973 and 1974. The Dow also dropped in 1977 and 1978, but the other indexes did not have a two-year losing streak.
Trading volume was light throughout the session as many investors took the day off ahead of the New Year's holiday. Fewer buyers and sellers made stocks more susceptible to sharp spikes or declines.
Monday also was the last day to sell stocks for any write-offs on 2001 tax bills, so analysts weren't surprised at the market's tone.
Much of the selling was focused in the technology sector. Gateway slipped 30 cents to $8.04, while Microsoft fell $1.62 to $66.25. Nine states on Monday opposed a Microsoft request for more time to produce evidence in the antitrust case against the company.
Retailers also suffered. The Gap fell 7 cents to $13.94, while Wal-Mart dropped 80 cents to $57.55.
America West rose $1.03 to $3.50 after the troubled airline won approval Friday for $380 million in lending guarantees under a $10 billion government package. Congress passed the package in response to the Sept. 11 terrorists attacks.
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