Stocks in Toronto fell Monday ending last’s week’s rally. The Toronto Stock Exchange S&P/TSX composite index lost 74.46 points, or 1.06%, to close at 6,972.42.

All of the TSX’s 10 sub-indexes lost ground during the session.

The downturn was driven by a downgrade to Nortel Networks Corp. and a profit warning from Motorola Inc.

As a result, the information technology sector fell 3.4% and the heavily weighted financial index lost 1%.

Motorola Inc. cut its second-quarter sales and earnings estimates due to the SARS virus and lower-than-expected sales in Asia.

Added to that was a move by Lehman Brothers to downgrade Nortel shares to “underweight” from “equal weight.” Nortel shares dropped 22¢, or nearly 5%, to $4.27. Software-maker Cognos Inc. fell $1.27, or 3%, to $38.87 a share following a downgrade of its shares by Research Capital to “hold” from “buy.”

South of the border stocks also fell, putting the brakes on a three-month rally. A management shake-up at the number two American mortgage company, Freddie Mac fueled fears about the company’s stability. It also raised doubts about the role that the housing market has had in propping up the fragile U.S. economy. The Motorola profit warning also had an impact on today’s trading.

Freddie Mac and Motorola, dropped 16% and 2.3%, respectively. It inspired investors to dump stocks.

The Dow Jones industrial average fell 82.79 points, or 0.91%, to 8,980. The Standard & Poor’s 500 Index slipped 11.83 points, or 1.20%, to 975.93. The Nasdaq composite index shed 23.45 points, or 1.44%, to end at 1,603.97, based on the latest data.