New York ? Consumer confidence plunged in February to its lowest level in nearly 10 years, dragged down by the prospect of war with Iraq.

The Consumer Confidence Index fell almost 15 points to 64.0 — its lowest reading since October 1993 — from 78.8 in January, the Conference Board reported Tuesday. Analysts were predicting a reading of 77.0.

“On all fronts, it’s jitters about the upcoming war with Iraq,” said Josh Feinman, chief economist for Deutsche Asset Management in New York.

The Dow Jones industrials fell as much as 138 points to a four-year low before staging a late-day rally on bargain hunting. The Dow rose 51.26 points to close at 7,909.50, while the Nasdaq composite index gained 6.6 points at 1,328.98.

Economists closely track consumer confidence because consumer spending accounts for two-thirds of U.S. economic activity.

“The gloom is deepening,” said economist Oscar Gonzalez of John Hancock Financial Services in Boston. “A stagnant job market, rising oil prices, slumping stock prices and the threat of war with Iraq, all of these seem to be pressing down heavily on consumers.”

With the United States moving closer to war, the Consumer Confidence Index was down for the third straight month in February, as those surveyed expressed more worries about the job outlook and their incomes.

The Present Situation Index, which gauges consumers’ sentiment about current business conditions, dropped to 61.6 in February from 75.3 in January. The last time the index fell to such lows was in November 1993, when it slumped to 59.2.