Tech Triggers Big Drop

Trouble at Cisco, Intel spurs sell-off; bumpy ride for financials, too
By Nick McMaster,  Newser Staff
Posted Jul 9, 2008 3:37 PM CDT
A sign in the lobby of Cisco headquarters in San Jose, Calif. is seen Monday, Nov. 5, 2007.    (AP Photo/Paul Sakuma)
camera-icon View 2 more images

(Newser) – Stocks fell today as investors saw weakness across the economy, particularly in tech bellwethers Cisco and Intel, MarketWatch reports. Oil also rebounded from a two-day fall, trading up 65 cents to $136.69 a barrel. The Dow fell 236.77, closing at 11,147.44. The Nasdaq shed 59.55 to close at 2,234.89, and the S&P 500 lost 29.01, settling at 1,244.69.

Cisco fell 4% after JP Morgan analysts said the firm’s revenue would not grow in the next few quarters. Financials also took a beating, as anxiety persisted over Fannie Mae and Freddie Mac’s available capital despite reports yesterday. "The financial sector has been the lightning rod for the market for almost 12 months now, and that hasn't changed," one trader told the Wall Street Journal.