Tech Stocks Plunge Again

Last time out, weak monthly retail chain-store sales, a near 10% drop in Cisco (CSCO Quote) and more rhetoric from Federal Reserve Chairman Ben Bernanke combined to sink the market. The major averages, though, managed to rebound from heavy selling, paring losses in the final hour of trading.

The Dow ended down 33.73 points, or 0.25%, at 13,266.29 -- nearly 200 points above its session low. The S&P 500 also bounced back from its worst, finished lower by 0.85 point, or 0.06%, to 1474.77.

The Nasdaq was the hardest hit, plunging by more than 90 points around midday. By the close it showed a loss of 52.76 points, or 1.92%, at 2696.

Following the last close, Dow component Disney (DIS Quote) narrowly beat estimates, and chipmaker Nvidia (NVDA Quote) posted a profit that more than doubled from a year ago. Shares of Disney fell 2.7% to end at $32.74, and Nvidia closed 1.4% lower at $33.36.

Aside from earnings, traders had to focus on the latest batch of economic data. The Labor Department said that its import price index jumped 1.8% last month, well above expectations. At the same time, the Commerce Department said that the international trade balance unexpectedly narrowed to a deficit of $56.5 billion during September from a revised $56.8 billion in August.

Additionally, the University of Michigan said the November reading of its consumer sentiment index came in at a surprisingly sluggish 75.0, the lowest level in two years.