Around the World's Markets: New York

THE DOW Jones fell for a second day as bond yields hovered at 13-month highs. The Nasdaq rose, recovering almost all of yesterday's loss, as optimistic forecasts for personal computer and semiconductor sales lifted Microsoft and Intel.

"Bonds are up through 6 per cent, and that's causing equity bulls to rethink their stance,'' said one analyst. The Dow slumped 75.35, or 0.7 per cent, to 10,690.29.

The Nasdaq jumped 45, or 1.8 per cent, to 2,519.56, after losing 49.65 points yesterday.