NEW YORK, Aug 2 (AFP) - A heightened terror alert for US financial institutions sparked an opening decline on Wall Street Monday, but the losses were relatively modest.
In the first 15 minutes, the Dow Jones industrials fell 25.96 points (0.26 percent) to 10,113.75 and the Nasdaq composite dropped down 11.64 points (0.62 percent) to 1,875.72.
The decline came after US officials over the weekend cited "unusually specific" evidence of possible al-Qaeda attacks against certain key financial sector buildings, including the New York Stock Exchange and the International Monetary Fund.
"The terrorist alert, which was raised to orange at specific sites, underscores the caution usually seen on Friday in an anything-can-happen geopolitical world," said Larry Wachtel at Wachovia Securities.
"The market psyche is rather fragile and this will simply add to the overhang."
Others said the markets would be able to shoulder the latest threat.
"I think the market will absorb this near-shock over a day or two and then refocus on what counts, which is the economy -- including the employment (job creation) number on Friday," said Hugh Johnson, chief investment officer at First Albany Corp.
"Other warnings have been less serious, this warning is more serious but it's still a warning and we've learned to live with warnings."
Bob Dickey at RBC Dain Rauscher suggest the drop may be an opportunity for investors.
"There does appear to be a good trading opportunity developing to the upside for those who are willing to risk the bad news of the day and make a commitment," Dickey said.