The InformationWeek 100 fell 7.44 points, or 2.3%, to 321.55. The Nasdaq fell 52.07 points, or 2.5%, to 2,014.14. The Nasdaq-100 tracking stock fell 60 cents to $36.33 as more than 109.2 million shares changed hands. The Dow Jones industrials fell 34.44 points, or 0.3%, to 10,470.74, while the Standard & Poor's 500 fell 9.51 points, or 0.8%, to 1,126.52.
Cisco fell $2.33, or 8.8%, to $24.08, although its earnings, reported Tuesday after the closing bell, beat Wall Street's expectations. However, the networking equipment maker indicated that any rebound in spending remains uncertain, triggering the decline in tech stocks.
Another big decliner on the Nasdaq was Ciena, which fell $1.30, or 18%, to $5.99, after the telecommunications equipment maker warned investors that its first-quarter revenue is likely to drop below forecasts. Oracle, which raised its offer for PeopleSoft to $26 a share, or $9.4 billion, fell 64 cents, or 4.6%, to $13.27.
It was a tough day for tech stocks on the Dow, too. Hewlett-Packard fell 72 cents to $23.19, while Intel fell $1.34 to $30.02 and Microsoft fell 28 cents to $27.01.