Tech stocks ended their weeklong rally, tumbling with the rest of the market, a day after voters elected Barack Obama as president to help navigate the country through an economic crisis.
The Nasdaq fell 98 points, or 5.5%, to close at 1682.
Yahoo! on Wednesday acknowledged that Google (GOOG) had pulled out of a search deal that was expected to generate $250 million to $450 million in operating cash flow, and potentially $800 million in annual revenue.That has left investors wondering if Microsoft is now in a better position to acquire Yahoo!. The two companies had walked away from negotiations in June. Shares of Microsoft fell 6.2% to close at $22.07. Time Warner Cable (TWC - Get Report) saw its shares tumble 3.2% to $19.90 after it lowered its full-year outlook . The company posted better-than-expect third quarter earnings but cut its 2008 guidance to $1.10 a share to $1.15 a share. Analysts had been expecting earnings of $1.13 a share. Time Warner anticipates an 8% rise in full-year revenue, but that's down from its earlier projection for a 9% growth. SunPower's (SPWRA) shares plummeted 35% to $32.84 after the company said that a stronger U.S. dollar will reduce fourth quarter and fiscal 2009 earnings growth . The company now expects fourth-quarter revenue of $388 million to $418 million, and earnings of 58 cents to 65 cents a share, excluding items. That's below Wall Street estimates for earnings of 75 cents a share in the fourth quarter. For 2009, SunPower expects total revenue of $2 billion to $2.1 billion and earnings of at least $3 a share.