NEW YORK (CNN/Money) - Technology issues ran out of steam Friday, despite a solid run-up in the previous session.

The Nasdaq composite lost 0.6 percent, or 13.33 points, to 2,086.92, but still managed a strong 4 percent gain for the week.

The Amex technology index dropped 9.82 to 752.26 and the Philadelphia Semiconductor index dipped 1.70 to 543.31.

International Business Machines late Thursday said it received a notice that the Securities and Exchange Commission may take civil action against the company for potentially violating securities laws in connection with a used-equipment swap it arranged with discount retailer Dollar General Corp. (DG: Research, Estimates).

Shares of IBM (IBM: Research, Estimates), a Dow component, fell nearly 2 percent to $91.21 on the New York Stock Exchange.

Lucent Technologies (LU: Research, Estimates) stock briefly topped the New York Stock Exchange's most-active list after losing 4.6 percent to $3.70 following a ratings downgrade.

Morgan Stanley downgraded the shares to "equal weight" from "overweight," saying the stock's huge price run relative to earnings makes it expensive.

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Ratings downgrades also sent SBC Communications (SBC: Research, Estimates) shares slightly more than 5 percent lower to $26.20 and knocked AT&T (T: Research, Estimates) shares 4.2 percent lower to $21.06. Both trade on the New York Stock Exchange.

Merrill Lynch cut its rating on shares of SBC to "sell" from "neutral," citing valuation concerns and challenging growth prospects.

Deutsche Bank Securities, meanwhile, downgraded AT&T's stock to "sell" from "hold."

Shares of space-related companies took off on hopes that President Bush's initiative for a permanent U.S. presence on the moon and an eventual manned mission to Mars will boost profits.

Shares of space module maker Spacehab Inc. (SPAB: Research, Estimates) soared nearly 88 percent to $3.16 on the Nasdaq, while satellite and launch vehicle maker Orbital Sciences Corp. (ORB: Research, Estimates) shot up 3.5 percent to $12.90 on the New York Stock Exchange.  

--from staff and wire reports