Meanwhile, blue chips flirted with positive territory as investors sought shelter in energy, pharmaceutical and beverage companies.

The technology-laced Nasdaq Composite Index shed 35.87 points, or 1.11 per cent, at 3204.67. The Dow Jones industrial average rose 6.29 points, or 0.06 per cent, at 10,530.69.

Lucent, on late Tuesday became the latest in a stream of firms to warn the the profits would miss forecasts. The world's largest telecommunications equipment maker cut its profit growth outlook for the third time this year.