Rising oil prices and disappointing forecasts for the technology sector sent stock prices down Tuesday. The Nasdaq composite index, which includes many tech stocks, fell more than 2 percent, its biggest loss since mid-March.
The Dow Jones industrial average fell 63.49, or 0.6 percent, to 10,219.34.
Broader stock indicators fell sharply. The Nasdaq dropped 43.23, or 2.2 percent, to 1963.43, its biggest one-day drop since March 15. The Standard & Poor's 500-stock index was down 9.17, or 0.8 percent, at 1116.21.
Light, sweet crude oil for August delivery settled at $39.65, up $1.26, on the New York Mercantile Exchange.
Dow component Intel dropped 22 cents, to $26.11, after Lehman Brothers reduced its earnings forecast for the chip manufacturer because of less back-to-school demand for personal computers.
Conexant Systems, a wireless-chip maker, said its third-quarter sales and earnings would fall below expectations. Conexant fell $1.77, or 43 percent, to $2.31.
"The thing with semiconductors is just going to repeat itself throughout the market," said Bill Groenveld, head trader for vFinance Investments. "If somebody has more seller interest on a given piece of news, they're going to pull out the negatives. If there's more buyer interest, you'll see the silver lining. Right now, there's just no volume and very little buyer interest."
Little economic data is due this week, and the bulk of second-quarter earnings reports are still at least a week away.
Aircraft manufacturer Boeing was upgraded from "underperform" to "market perform" by Wachovia Securities because of steady business growth. Still, Boeing fell 21 cents, to $49.31.
Acuity Brands reported an 18 percent increase in third-quarter earnings Tuesday and reiterated the company's full-year outlook, but the lighting and specialty products company missed expectations by 2 cents per share. Acuity fell 52 cents, to $25.45.
Veritas Software plunged $9.55, or 36 percent, to $17.00 after it lowered its second-quarter earnings and revenue outlook, citing weakness in corporate software sales.
Drugstore chain Rite Aid said its same-store sales rose 2.4 percent, following a trend in the pharmacy sector. Still, Rite Aid slipped 17 cents, to $4.91.
* The New York Stock Exchange composite index rose 55.17, to 6597.53; the American Stock Exchange index fell 3.78, to 1256.18; and the Russell 2000 index of smaller-company stocks fell 10.31, to 572.41.
* Declining issues outnumbered advancing ones by 8 to 5 on the NYSE, where trading volume rose to 1.28 billion shares, from 1.08 billion on Friday. On the Nasdaq Stock Market, decliners outnumbered advancers by 3 to 1 and volume totaled 1.89 billion, up from 1.19 billion.
* The price of the Treasury's 10-year note fell 63 cents per $1,000 invested, and its yield remained at 4.47 percent.
* The dollar rose against the Japanese yen and the euro. In late New York trading, a dollar bought 109.48 yen, up from 108.38 late Friday, and a euro bought $1.2297, down from $1.2324.
* Gold for current delivery remained at $398.30 a troy ounce on the New York Mercantile Exchange's Commodity Exchange.