Updated from 4:54 p.m. EDT

Tech stocks took a plunge late in Tuesday's session after managing to spend much of the day in positive territory.

By the closing bell, the Nasdaq had slipped 0.33% to 1,673.81. Among the stocks on the losing side:

Microsoft ( MSFT) fell 2.3% to $19.93 after it was announced that it and Verizon ( VZ) were teaming up on a smartphone to rival Apple's ( AAPL) iPhone. The phone, code named "pink," apparently will have no branding connection with the creatively coiffed singer who bears the same name.

In other telecom drama, Nokia ( NOK) announced it was cutting 450 jobs and refocusing its might on Ovi, its mobile phone services unit. It fell along with most other handset maker stocks, losing 2.2% to $13.18. Rival Motorola ( MOT) did manage to eke out modest gains, rising 1.8% to $5.81.

IBM ( IBM), meanwhile, rose 2% to $101.94 on news that it was raising its quarterly dividend by 10% to 55 cents. The company also is reportedly taking its relationship with Brocade ( BRCD) to the next level with a new distribution deal for Internet routers switches. Brocade investors cheered the development, sending the stock up 1.3% to $5.41.

In the semiconductor space, most widely held stocks were down. Two notable exceptions were Nvidia ( NVDA) -- which rose 0.3% to $11.05 after UBS raised its estimates and target -- and Atmel ( ATML), which rose 5.9% to $3.93.

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