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Monday 26 July 1999 23:02 BST

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STOCKS fell, led by Microsoft and other computer-related companies, on fears that US interest rates will head higher.

The Nasdaq Composite, dominated by computer-related shares, led the way down, shedding 2.7 per cent, to 2,619.16, extending last week's 6 per cent fall. The S&P 500 lost 0.7 per cent to 1,347.76, and the Dow fell 47.80 points, 0.4 per cent, to 10,863.16. America Online lost $83/8 to $999/16; Microsoft fell $21/2 to $873/4.

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