Stocks slumped yesterday, weighed down by technology shares, as profit warnings from companies like networking giant Juniper Networks reignited worries about what is likely to be a brutal fourth-quarter earnings reporting season.

"There is already a bit of anticipation built into some equity prices ... and as these corporate profit warnings come out, people get jittery and say, 'Oh gosh, things aren't necessarily going to turn around,'" said Mr Richard Babson, chairman of Babson-United Investment Advisors.

The market has shot higher since late-September amid growing hopes for a rebound in the economy and corporate profits next year.

But the rally has lost momentum as Corporate America continues to offer cautious comments about the future.

Earnings warnings coming primarily from the technology sector -- with gloomy forecasts from networking heavyweight Juniper and Jabil Circuit - have dented the market's sentiment, with technology shares the hardest hit.