Tech Stocks Plunge Again

Wachovia started the initial wave of selling after it became the latest lender to announce a writedown, following Citigroup (C Quote), Merrill Lynch (MER Quote) and Morgan Stanley (MS Quote).

The fourth-largest U.S. bank said it expects to record a $1.1 billion writedown in debt obligations for October alone because of the recent subprime mortgage and credit mess. Shares of Wachovia reversed early losses and closed 0.9% higher at $40.65.

Meanwhile, Barclays (BCS Quote) ended down 3.6% as rumors swirled that the lender would be the next in line to announce a hefty debt-valuation charge. Barclays denied the rumor it would write down $10 billion due to exposure, though it didn't comment on whether there would be a writedown at all.

Fannie Mae (FNM Quote) shares were also stung by the subprime mortgage and credit market volatility. The company said it had a fiscal third-quarter loss of $1.4 billion, or $1.56 a share, more than doubling its losses from a year ago. Shares lost 80 cents, or 1.6%, to $49.

Elsewhere, Qualcomm dragged on technology stocks. The company posted fiscal fourth-quarter earnings and revenue numbers late Thursday that exceeded Wall Street's estimates, but poor fiscal 2008 guidance dropped the stock 4.2% to $38.10.

Major tech names were under pressure for another day. Research In Motion (RIMM Quote) was 9.1% lower, Apple (AAPL Quote) shed 5.8%, Oracle (ORCL Quote) fell 4.9%, Google (GOOG Quote) declined 4.3%.