Around the World's Markets: New York

STOCKS FELL sharply as worries about corporate profits, inflation prospects and the military campaign in Kosovo blunted the impact of an expected end-of-quarter buying flurry.

The Dow Jones average closed down 127.1 points, or 1.28 per cent, at 9,786.16, sliding for the second successive day after its 10,007 close on Monday. Other indices followed the Dow, with the Nasdaq Composite losing early gains to close off 18.56 points at 2,461.73 and the S&P 500 ending down 14.34 points at 1,286.41.