Harvey Araton of the New York Times reports that the U.S. basketball team was eliminated from medal contention last night with a loss to Yugoslavia. The Yugos overcame a 10-point deficit in the fourth quarter on the way to a 81-78 victory.

The Americans had built a 69-59 lead behind Paul Pierce and Andre Miller, only to have Yugoslavia go on an 18-4 run that was capped by a dagger of a 3-pointer from the right wing by Milan Gurovic. That gave Yugoslavia a 77-73 lead, and after Miller's 3-pointer cut it to a point, guard Marko Jaric made four free throws to seal the victory.

Bedlam was set off in the Yugoslav rooting sections and on the court as Miller misfired a 3-point attempt as time expired. It was the first time that an American team failed to earn a medal at the world championships since 1978, when the tournament was played in October and the United States sent the barnstorming amateur team Athletes in Action.

Yugoslavia will play New Zealand, which upset Puerto Rico, 65-63, in the semifinals tonight. Argentina, which beat the United States on Wednesday night, eliminated Brazil, 78-67, and will next play Germany, which ousted Spain, 70-62. The United States team, led tonight by Pierce and Miller with 19 points each, was consigned to the consolation round Friday night against Puerto Rico, a development Miller called embarrassing.