The Nasdaq composite <.IXIC> briefly turned positive on Wednesday as Sun Microsystems soared nearly 65 percent following a report that IBM was in talks to buy the computer maker.

IBM in talks to buy Sun Micro according to WSJ report, Sun shares jump 64.8 pct to $8.19.

The Dow Jones industrial average <.DJI> dropped 89.68 points, or 1.21 percent, to 7,306.02. The Standard & Poor's 500 Index <.SPX> fell 7.85 points, or 1.01 percent, to 770.27. The Nasdaq Composite Index <.IXIC> shed 3.72 points, or 0.25 percent, to 1,458.39.

(Reporting by Rodrigo Campos; Editing by Theodore d'Afflisio)