-YORK (CBS.MW) - Tech stocks, led by the chip sector, took a beating Thursday, pushing the Nasdaq deep in the red for the third straight session. But the Dow's losses remained limited thanks to a jump in shares of Wal-Mart.
Earnings jitters have paralyzed tech investors in recent weeks, keeping them away from a group they fear will see soggier revenue growth as the economy slows going forward. Observers say valuations in the group, while more reasonable compared to those seen in March -- just before tech stocks took a hit -- are still lofty.
Putting pressure on the tech sector Thursday was an earnings warning from Kulicke & Soffa Industries late Wednesday, which unleashed a wave of selling in the chip sector.
In the broader market, bank stocks were a bright spot, as were the paper, utility and oil service sectors. Losing altitude were biotech and brokerage shares.
The Dow Jones Industrial Average fell 26 points, or 0.2 percent, to 10,661 at 10:24 a.m.
Hewlett-Packard, Microsoft and Home Depot were among the biggest losers within the index. Gainers included Wal-Mart, General Electric, Alcoa and McDonald's.
The Nasdaq Composite tumbled 82 points, or 2.3 percent, to 3,575 while the Nasdaq 100 Index plunged 83 points, or 2.4 percent, to 3,406.