The Nasdaq fell 148.31, or 4 percent, to close at 3,390.40, and the Standard & Poor's 500 index dropped 30.26 to 1,406.95.
The Dow fell 150.43 to 10,626.85, led by Hewlett-Packard and Intel.
At the end of regular trading, Intel was down $6.06 at $117.88. The chipmaker reduced first-quarter earnings per share by a penny after it had to take a loss in inventory because of faulty chipsets.
Microsoft dropped $1.13 to $65.06.
The CNET tech index lost 102.85 to 2,528.37. Losers annihilated winners, with 94 of the 99 stocks in the index falling, 4 rising and one remaining unchanged.
Of the 18 sectors tracked, none rose. Wireless and semiconductor equipment companies posted the sharpest drops, falling 7 percent and 6 percent, respectively. PC hardware makers were the mildest losers, slipping 2 percent.
The initial public offering of Parthus Technologies was the biggest percentage gainer on the Nasdaq Stock Market. The shares jumped $8.22, or 65 percent, to $20.81. Volume topped 3.3 million shares.
Among members of the CNET tech index, Ciena and Nextel Communications posted losses.
Ciena fell $20.81, or 15 percent, to $116.50. The maker of equipment to boost capacity on fiber-optic networks said it expects to sell fewer new products and warned it may have to pay more for parts.
Nextel fell $11.06, or 11 percent, to $91.96.
Financial software maker Intuit managed to fight the sell-off tide and make a significant jump. The stock rose $3, or 11 percent, to $29.13. Some Web sites also managed to make meager gains. Fatbrain.com gained 44 cents to $6, and InsWeb inched up 19 cents to $2.75.
All stocks in the Philadelphia semiconductor index fell. The index dropped 52.17, or 5 percent, to 950.24, led by chip equipment maker KLA-Tencor, which lost $4.25 to $52.38.
After a series of dismal weeks in the IPO market networking companies that focus on the hot market for fiber optics are giving some life to Wall Street.
Covad Communications has been on a rollercoaster ride this week, with its stock rising and falling on takeover rumors. The shares fell $4.38 to $22.50.