Technology stocks are taking a beating amidst continuing concerns about the direction of the U.S. economy and the impact of rising energy prices on consumer spending.

Over the last few weeks, most tech stocks have declined 10 percent or more in value and many have recently fallen below their one-year high levels as jittery investors seek protection elsewhere in recession-proof stocks.

On Wednesday, technology stocks attempted a rebound in early trading but this soon fizzled, adding to the growing list of problems executives must now contend with as the industry faces the possibility of a demand downturn.

The hardest hit companies are in the semiconductor market. The Philadelphia Semiconductor Index, SOX, for instance, has fallen more than 34 percent to 358.22 since July when it hit 549.39, a 52-week high.

The price-weighted index of 18 leading chip manufacturers is officially in recession zone but is seen remaining under pressure as analysts drop revenue and profit forecasts for its component companies.

By: DocMemory
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