NEW YORK, Oct 30: Stocks were rooted in negative ground at midday on Tuesday as consumer confidence in October tumbled to its worst level in more than seven years after the deadly Sept 11 attacks left the nation reeling.

Investors were also eyeing Argentina amid fears that Latin America’s third largest economy could soon default on its $132 billion debt.

Adding pressure to Wall Street, US Attorney General John Ashcroft warned militants may be plotting new attacks on the United States at home and abroad in the next week.

Fragile consumer sentiment added just one more layer of apprehension to Wall Street. Stocks began on a weak note amid dour outlooks from companies like software provider Openwave Systems Inc., concern that Argentina will default on its $132 billion debt load and fear of more deadly attacks on the United States.

“The very weak consumer confidence numbers threw fuel on the fire, the market had already been sliding back from what had been fairly substantial gains,” said Rick Meckler, president of investment firm LibertyView, which oversees $1 billion. “It just encouraged those people who had profits at all to take their profits now before the market is considerably lower.”

The blue-chip Dow Jones industrial average slumped 120.62 points, or 1.3 per cent, to 9,148.88, after falling 2 per cent earlier. McDonald’s Corp., off $1.58 at $25.70, dragged on the Dow after the world’s largest fast-food restaurant company projected 2002 earnings below Wall Street’s forecasts.

The tech-laced Nasdaq Composite Index fell 27.04 points, or 1.59 per cent, to 1,672.48, after dropping 3 per cent. Juniper Networks Inc. lost 27 cents to $23.73 after Merrill Lynch cut its rating on the network equipment maker after its shares more than doubled in the last month.

The broader Standard & Poor’s 500 Index lost 14.77 points, or 1.37 per cent, at 1,063.53.—Reuters