Technology stocks plunged on Tuesday, with the tech heavy Nasdaq Composite index closed down for the eight straight session.

The Nasdaq fell 59 points, or 2.4 percent at 2,441. The Philadelphia Semiconductor Index also closed down more than 2 percent.

Shares of Microsoft dropped $1.16, or 3.35 percent to $33.45 after it announced that it would acquire enterprise search engine firm Fast Search & Transfer for $1.2 billion.

Apple shares fell 3.6 percent, or $6.39 to $171.25 after news that the maker of the iPod media player would settle claims with the European Union that its policy of having different prices for iTunes music stores in different countries violates EU law.

Seagate Technology shares were down after an analyst at Caris & Company downgraded the company's shares from above average to average, lowering its share target price from $30 to $25. Researchers cited deteriorating hard disk drive prices. Shares fell Shares fell 3.73 percent, or $0.86 to $22.17.