Toronto stocks closed sharply lower as concerns about a U.S.-led war in Iraq and sluggish corporate profit growth led to a selloff. The S&P/TSX composite index closed down 71.10 points at 6,755.92.

Tech stocks led the way lower as Nortel Networks fell 26¢to $3.21.

Weak forecasts from Microsoft and IBM weighed heavily on other tech shares, helping to push the TSX information technology shares down 4.6%.

Tech losers included Celestica, down $1.72 to $23.58. ATI Technologies lost 86¢ to $6.64.

Telecom stocks lost ground, with BCE Inc. off 60¢to $29.78 and Telus off 19¢ to $19.50.

Other active Toronto stocks included Bombardier, down 35¢ at $6.27; Placer Dome, retreating 27¢ to $17.30; and Canadian Natural Resources, up 74¢ to $48.19.

Moore Corp. dropped 7¢ to $16.31 after the firm made an offer of $1.3 billion US in cash and shares for Wallace Computer Services Inc. of Lisle, Ill. The combined company would be one of the world’s largest providers of forms, labels and distribution services.

The junior TSX Venture Exchange edged 4.71 points lower at 1,122.59

In New York, the Dow Jones industrial average fell 132.32 points to 8,565.55. The tech-heavy Nasdaq lost 45.41 points to 1,378.34. The S&P 500 was 14.94 points lower at 899.66.

U.S. markets will be closed on Monday for the Martin Luther King Jr. holiday.

The Canadian dollar lost 0.01 of a cent to US65.15¢.