Internet Stocks Tumble as Overall Interest Rate Fears Subside

Internet stocks remained in the red today, unable to take advantage of the late day upswing that was seen in the Dow.

Interest rate fears, which have plagued the market recently, seemed to diminish as traders edged the Dow Jones industrial average up 36.52 to close at 10596.26. Internet stocks were not so lucky, as the Internet stock index skidded down 29.52, or 5.75 percent, closing at 483.82. The Nasdaq ended the day down 58.48 at 2412.04. (Nasdaq:AMZN) took a 12.94 point hit to close at 105.81 on a report by Barron’s that cited the retailer as being overvalued.

AOL (Nasdaq:AOL) made news late in the day with its acquisition of online music players and Winamp maker Nullsoft, Inc., but still ended down 6.13 at 113.13.

Only two ISDEX stocks remained positive: CDNow (Nasdaq:CDNW), which closed up .81 at 18.75 and Exodus Communications (Nasdaq:EXDS), which ended the day plus 1.63 at 76.63. GeoCities and Concentric Networks were unchanged.

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