New York ? Disappointed by a report on the economy and unease following warnings of more terror attacks, investors cashed in profits on Wall Street Monday and sent stocks sharply lower.

Stocks were already expected to retreat somewhat after last week’s big rally, during which the tech-dominated Nasdaq composite index had its biggest weekly percentage gain in 13 months. But statements about terrorism by Vice President Dick Cheney and the FBI, as well as a disappointing Index of Leading Economic Indicators, prompted additional selling.

“The market was ripe for profit- taking. We had a very good week last week, a very encouraging week. So traders probably jumped on the Cheney thing as a triggering event, another reason to sell. And the economic news, although (the economy) is healthy, it is not as robust as people would hope,” said Bill Barker, investment strategy consultant at RBC Dain Rauscher in Dallas.

The Dow Jones industrial average closed down 123.58, or 1.2 percent at 10,229.50, still managing to hang onto much of its advance from last week when it climbed 413.16, or 4.2 percent.

The market’s broader indicators also pulled back.

The market’s losses were widespread as investors had profits to collect in most of Wall Street’s sectors.