Tech stocks fell for a second straight session yesterday as analysts cut their ratings on several high-profile companies, while blue chips moved higher on news of a major deal in the financial services industry.

The high-tech driven Nasdaq composite index dropped 129.84, or 3.1 per cent, to close at 4,013.34.

The Dow Jones industrial average closed up 52.03, or 0.5 per cent, at 11,310.64, and the Standard and Poor's 500 index was down 14.82, or 1.0 per cent, at 1,492.26.

Advancing issues outnumbered decliners by a 4-to-3 margin on the New York Stock Exchange. Volume came to 992.30 million shares, compared to 836.45 million the previous session.

The Russell 2000 index of smaller companies was down 2.91 at 536.11.