After a strong second half Monday, tech stocks continued their free fall Tuesday. We’re really starting to get an idea of how analysts erred on the side of optimism believing the technology sector was insulated from the market’s troubles. At the 4:00 pm trading deadline, Dell had dropped 6.39%, from 15.04 to 13.55. Apple fell 9.15% to 89.16, Microsoft dropped 6.74% to 23.23, and Cisco ended the day at 18.84, down 7.92 from Monday's close. Sun Microsystems dropped 10.45%, from 6.61.
EBay, who announced Monday the layoffs of 10% of its employees and a billion dollars in acquisitions, fell 7.77%, finishing the trading day at 16.50.
This week’s losses have brought some of the largest companies to their worst finishes in years.Companies to have hit their lowest point in five years include Sony, eBay, Electronic Arts, Yahoo, and Sun. Google and Cisco were at their lowest in two years.
The Morgan Stanley High Tech Index closed at Tuesday at 384.11 after opening the day at 411.35, a drop of 6.62%.One year ago to the day, the index was at 682.94.
While stocks rallied Monday, there was no similar upturn Tuesday. The Dow, Nasdaq, and S&P 500 all closed with drops of between 15 and 20 percent.