US equities continue relentless slide

Nasdaq hovers above worst trading records in four years

US stocks fell in midday trading on Thursday after a number of companies reported layoffs and shrinking profits, which diminished the short-term outlook for the struggling economy.

The Dow Jones saw trading fall 3.85 per cent to 8,421.88, but within minutes recovered some of that loss to 8,468, down 3.32 per cent.

The Nasdaq Composite Index dropped 2.61 per cent to 1,481.

The market has been in decline since it opened on Monday after a four day break, due to the terrorist attacks in New York and Washington D.C.

However, Alan Greenspan, US Federal Reserve chairman, told congress today that last week's attacks will hurt the economy in the short-term, but won't weaken bright long-term prospects.