Technology stocks closed lower yesterday, as renewed worries about weaker corporate profits got the upper hand in a tug of war with upbeat financial results from two companies.

The tech-laced Nasdaq Composite Index fell 46.84 points, or 1.20 per cent, to 3,849.51, bringing its down almost 10 per cent so far this month. The index was up for most of the day, and had rallied to within sight of the key 4,000 level.

Meanwhile, blue chips rose modestly, driven by the surging shares of J.P. Morgan, which hit a record high of $180 at one point, as speculation mounted that the U.S. investment bank would be sold to a larger rival soon.

The Dow Jones industrial average was up 37.74 points, or 0.34 per cent, at 11,233.23. The S&P 500 index was down 7.27 points, or 0.49 per cent, at 1,481.99.