NEW YORK (CNN/Money) - Technology stocks fell sharply Thursday as record high oil prices kept the Nasdaq under constant pressure in a trading session that grew progressively worse throughout the day.

The tech-heavy Nasdaq (Charts) fell 1.8 percent, led by a 3.4 percent drop on the Goldman Sachs Internet index and a 2.2 percent drop on the Goldman Sachs Hardware index.

Oil closed at a record high Thursday, leading some investors to believe that U.S. consumers will feel an additional tax as prices on everything from gasoline to shipping to plastics move higher.

Some of the hardest hit in the Internet sector were Amazon.com (AMZN: Research, Estimates), with a 4 percent drop, United Online (UNTD: Research, Estimates), with a 19.3 percent drop, and AskJeeves (ASKJ: Research, Estimates), which fell 8.6 percent.

In the hardware sector, losers of note were Research In Motion (RIMM: Research, Estimates) with a 6.6 percent drop and Gateway (GTW: Research, Estimates), which tumbled more than 3 percent.

But not all tech stocks lost ground Thursday.

Shares of XM Satellite rose 3.7 percent after the satellite radio provider said its revenue nearly tripled after it added more subscribers. The company also raised its subscriber target for the remainder of the year.

Another winner was DirecTV, which posted a 21 percent gain in second-quarter revenue as it also added more subscribers.

Although oil is the prevailing concern with the economic recovery, Friday's July employment report may also play a large role in tomorrow's trading and the Fed's next move on interest rates when it meets August 10.