Technology stocks ended lower on Monday as many of the sector's major players tumbled giving the Nasdaq its seventh consecutive day fall, its longest losing streak since June 2006.
UBS predicted lower server and PC spending in 2008 as the economy slows affecting shares of IBM, Sun, Dell, EMC, Network Appliance, HP and Vmwar. Shares of Network Appliances fell more than 6% after the company's stock was downgraded to neutral from buy by UBS.
The Nasdaq Composite Index was off 5.19 points, or less than 1 percent, to close at 2,499.46 points.
Dell Inc. and Hewlett Packard Co. shares were down more than 3 percent, while those of eBay Inc. were off more than 2 percent. Other major companies, including Apple Inc., Sun Microsystems Inc. and Google Inc. also saw their shares decline more than 1 percent.
Intel shares dropped a further 1 percent after a 15 percent decline last week. DTS jumped 12 percent on new sound technology unveiled at CES, and Sony was up 3 percent on Blu-Ray gains.
The Dow Industrial Average ended the day up around 27 points amid expectations that the Federal Reserve will likely cut interest rates once again to ward off a recession.