Technology stocks fell deeper into negative territory following downbeat earnings from computer giant Compaq Computer Corp. and others. The broad market edged lower, shedding earlier gains built on bargain hunting by investors who snatched up select issues hoping the economy would pick up after the Federal Reserve lowered interest rates four times this year.

The technology-laced Nasdaq Composite Index fell 42.62 points to 2,016.70 and the broad Standard & Poor's 500 Index was down 14.46 points at 1,209.90.

Stocks rallied this month on mounting hopes that the market, badly beaten over the last year, already reflected bleak corporate earnings. But a tumble in consumer confidence and a procession of dour earnings from tech bellwethers is now keeping optimism in check.