Analysts said the selling reflected concerns about whether upcoming earnings reports would justify the market's recent surge. The anxiety overshadowed Federal Reserve Chairman Alan Greenspan's comments that the weakening U.S. dollar and disappointing jobs data were not barriers to the economic recovery.

"We're in earnings season so that's completely dominating what most market watchers are looking at," said Brian Bruce, director of global investments, PanAgora Asset Management Inc. in Boston.

Trading has been uneven so far this week as the market waits for earnings news.

Analysts said investors are particularly nervous about technology stocks, which have enjoyed some of the most significant gains even as the number of new jobs fell far short of expectations in December and the U.S. dollar continued to lose ground against the euro.

Intel Corp.'s earnings report, due out today, was anxiously awaited by investors looking for signs that the upswing in technology stocks is sustainable.

The Nasdaq composite index, which has a large technology component, has been trading at levels not seen in two years, and not everyone is convinced that the valuations are warranted.

Intel finished down 56 cents at $33.59 in selling that extended to other technology stocks. Yahoo! Inc. slipped 94 cents to close at $48.80.

Declining issues led advancers nearly 5 to 4 on the New York Stock Exchange.