Just about every major stock in technology, from chipmakers to consumer electronics titans to Web stars, was dragged into Wall Street’s slide

by Arik Hesseldahl

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While much watchfulness on Sept. 29 was fixed on the failed bailout vote in Congress and its contact on the Dow Jones pertaining average, tech stocks also came under pressure.

The technology-heavy Nasdaq dropped 199.61 points, or 9%, to 1983.73, the third-largest percentage decline ever. Computer public funds alone lost about $113 billion in place of traffic value. The Sept. 29 tech-stock rout was eclipsed only by the Black Monday crash on Oct. 19, 1987, when the Nasdaq plummeted more than 11%, and Apr. 14, 2000, when it tumbled 9.7%.

Among tech stocks, the most notable loser was computer and consumer electronics creator Apple (AAPL), the subject of at least brace algebraist downgrades. Apple ruthless 22.98, or more than 17%, to 105.26, the copartnership’s fifth-biggest decline in percentage terms. The overthrow wiped $20 billion from Apple’s market capitalization and came eight years to the day after Apple’s biggest-ever one-day percentage decline—on Sept. 29, 2000, it lost more than moiety its value.

Investors sold tech on concerns that, barring a bailout for the financial sector, cutbacks in lending will cause companies to trim or procrastination orders without ceasing computers, software, networking gear, and other tech products. Wall Street’s woes are also depressing consumer tender susceptibility and could make on this account that a bleak end-of-year selling season for consumer electronics makers and online retailers. "Tech is not at the epicenter of the problem," says Doug Freedman, managing director at American Technology Research in San Francisco. "[But] tech definitely carries higher-than-average multiples and above-average risk for the reward. We’re at a point where people have little tolerance in spite of risk."

RBC Capital Markets (RY) analyst Michael Abramsky cut his rating on Apple, citing survey data showing consumers are less determination to spend on consumer electronics. At Morgan Stanley (MS), analyst Kathryn Huberty cut her rating for the cause that of pressure in continuance Apple’s gross margins—costs are rising for back-to-school promotions and other products. Apple shares finished the day down nearly 48% from their all-time high of 202.96 on Dec. 27, 2007.

A Sept. 26 report from Andy Hargreaves at Pacific Crest Securities in Portland, Ore., claimed that Apple has curtailed manufacturing orders for its iPhone, cutting its target to 14 million from 18 million. Hargreaves’ note followed reports that Apple was reducing its purchases of remembrance chips (BusinessWeek.com, 9/24/08).

Shares of Research In Motion (RIMM), maker of the BlackBerry wireless emblazoned bearing, dropped more than 12%, to 61.73. That followed declines earlier in the month after RIM issued a forecast below analysts’ estimates. RIM has destroyed 58% since reaching a 52-week high on June 19.

Computer makers also came under fire. Analyst Doug Reid of Thomas Weisel Partners (TWPG) downgraded computer hardware giants Dell (DELL) and Hewlett-Packard (HPQ), while Wachovia (WB) analyst David Wong downgraded the entire computer hardware sector. HP cruel 3.26, or nearly 7%, closing at 44.55, while Dell lost 1.59, or to a greater degree than 9%, to finish at 15.41. Hard drive constructor Seagate Technology (STX), newly listed forward the Nasdaq, fell 0.68, or additional than 5%, to close at 11.74. Software giant Microsoft (MSFT) fell more than 8%.

Other losers included chipmaker Intel (INTC), which fell 1.93, or more than 10%. Wireless chipmaker Qualcomm (QCOM) dropped 13%, as did cable TV provider Comcast (CMCSA). Software giant Oracle (ORCL) dropped 1.85, or within a little 9%. Cisco Systems (CSCO) fell 2.03, or else than 8%. Satellite radio disquiet Sirius XM (SIRI) fell more than 18% to close at 0.62 a share. It has been mercantile for less than 1.00 a share since Sept. 11 and remains in risk of being delisted.

Internet companies weren’t immune. Search giant Google (GOOG) sententious precept its lay by drop 50.04, or 11.6%, ending the set time on 381, its earliest do below the 400 mark in two years.

Online retailer Amazon (AMZN) fell greater quantity than 10%, while eBay (EBAY) dropped 11%. Yahoo (YHOO) also depraved more than 10%.