Nets, Nasdaq Take Big Afternoon Tumble
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Internet and technology shares took a dive in afternoon trading Tuesday, prompted by steep losses within the biotech sector.
Biotechs tumbled after President Clinton and Britain floated a proposal that would give researchers around the world free access to human genome mapping. Success in the field has led a number of biotech stocks to soar in recent months amid speculation that the process will spur a new round of health care successess.
As for Internets, analysts attributed the fall to simple profit-taking, saying many stocks, particularly in the business-to-business sector had simply gotten ahead of the levels investors were willing to pay.
At the close, internet.com's Internet Stock Index had plunged 44.85, or 4.19 percent, to 1,025.80, the Nasdaq Composite had lost 200.61 to 4,706.63 and the Dow Jones industrial average was off 135.89 to 9,811.24. The Nasdaq's drop was its largest in more than two months.
McAfee.com Corp. (MCAF) leaped 6-1/2 to 52-1/4. The antivirus software site and parent Network Associates Inc. (NETA) will provide online virus scanning technology to users of Microsoft Corp.'s (MSFT) Hotmail e-mail service.
Adaptive Broadband Corp. (ADAP) closed off 11-3/4 to 166-3/8 after hitting 193 earlier in the session. The high-speed wireless equipment maker announced a 2-for-1 stock split.
Three IPOs hit the Stre