Poor Intel performance gives Wall Street the jitters

Wednesday's warning from Intel that its Q1 revenues would be 10 per cent down on the previous quarter has sparked a rush by US investors away from technology stocks.

News of the chip maker's downturn, in tandem with dismal results elsewhere in the technology sector, managed to wipe almost three per cent off Nasdaq's composite index yesterday. There was however a degree of guarded relief on Wall Street since many analysts had expected Wednesday's news to hit harder.

The sector is suffering from a cocktail of adverse factors, ranging from problematic Asian economies to a hangover from an over supplied Christmas PC market.

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