Nasdaq slumps to two-year low as tech troubles worsen

The Nasdaq composite index fell to a two-year low overnight, as profit worries caused already-battered technology stocks to plunge further.

On Tuesday, Nasdaq plunged 178.66 points, or 7.23 per cent, to a 22-month closing low of 2,291.86, as did the blue-chip Dow Jones industrial average which slipped 140.7 points, or 1.3 per cent, to 10,646.15. Nasdaq heavyweight Cisco, the most actively traded stock, fell $4.93 to $33.31, also hitting a 52-week low at $32.62 early in the day. That resulted in the decline of S&P Computer Networking index, which plunged a substantial 13 per cent. Veritas shed nearly 25 per cent of its value EMC fell just over $12 to $54.31 on the New York Stock Exchange and Network Appliance faired little better, dipping $12.75 to $51.44. Europe's markets followed the US today on opening, with the tech sector naturally taking a beating after the seven per cent fall of the Nasdaq. Among the worst hit firms were Autonomy, down 13 per cent, Misys, which fell 12.3 per cent, and IT services group Capita - down 7.2 per cent. Nokia saw an eight per cent fall and its French rival Alcatel also suffered a downgrade of 6.4 per cent in the continuing tech sell-off. UK mobile phone giant Vodafone fell 4.4 per cent. IT services firm CMG shed 10.2 per cent, and IT services firm Logica 11 per cent. Baltimore Technologies' stock dropped 12.2 per cent. After posting sharp declines on Tuesday, Germany's SAP fell eight per cent. The opening of US markets may give Europe a modest boost in afternoon trading, as it's expected both the Dow Jones Industrial Average and the Nasdaq will rise around 20 points.