Lowered capital spending projections from Intel (INTC: news, chart, profile) had broad implications, stifling the equipment makers across the board.

The Dow Jones Industrial Average ($INDU: news, chart, profile) slid 117 points, or 1.4 percent, to 8,141.

The Nasdaq Composite ($COMPQ: news, chart, profile) surrendered 34 points, or 2.7 percent, to 1,247 and the Nasdaq 100 Index ($NDX: news, chart, profile) slumped 25 points, or 2.7 percent, to 924.

The Standard & Poor's 500 Index ($SPX: news, chart, profile) declined 1.2 percent while the Russell 2000 Index ($RUT: news, chart, profile) of small-capitalization stocks fell 1.2 percent.

Volume amounted to 185 million on the NYSE and at 438 million on the Nasdaq Stock Market. Decliners squashed advancers by 18 to 8 on the NYSE and by 16 to 7 on the Nasdaq.

Intel, Motorola tumble

Intel tumbled 15.7 percent after reporting late Tuesday a profit that missed the Wall Street consensus estimate and warned that sales in the fourth quarter would be softer vs. Wall Street's current expectations. And in a move that will hit the heart of the chip sector, Intel said it was slashing its 2002 capital expenditures. See full story.

On its part, fellow chip firm and handset maker Motorola (MOT: news, chart, profile) gave investors a glum outlook for the remainder of the year and for 2003 and saw its shares slide 19.8 percent as a result.