Investors had pushed up tech stocks in the belief that 2003 would be better for the beleaguered sector, which has suffered under a two-year long crunch in corporate spending, analysts said.
"People were holding out hope that IBM and Microsoft would be more positive on their guidance," said Tom Berquist, an analyst with Goldman Sachs. "But both of them continued to reference the difficult economic environment and enterprise spending. The same old concerns."
Microsoft and IBM each sank more than 5 percent in active trade, leading indexes lower and adding pressure to a market already grappling with weak corporate outlooks and the threat of war with Iraq.
"People were holding out hope that IBM and Microsoft would be more positive on their guidance," said Tom Berquist, an analyst with Goldman Sachs. "But both of them continued to reference the difficult economic environment and enterprise spending. The same old concerns."
Microsoft and IBM each sank more than 5 percent in active trade, leading indexes lower and adding pressure to a market already grappling with weak corporate outlooks and the threat of war with Iraq.
