NEW YORK (CNNMoney.com) - Techs tanked Tuesday, dragging down the Nasdaq composite and keeping the broader market from making much headway.

The Nasdaq composite (down 17.65 to 2,268.38, Charts) lost around 0.8 percent, dragged down by the influential chip sector.

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The Dow Jones industrial average (up 22.10 to 10,980.69, Charts) added 0.2 percent while the broader Standard & Poor's 500 (down 2.38 to 1,275.88, Charts) index fell 0.2 percent.

Texas Instruments' less bullish than hoped for forecast provided the catalyst for investors to bail out of chips and a variety of other tech shares. Meanwhile oil and home building stocks continued to suffer profit taking after the recent run up.

Ongoing worries about a jump in bond yields also played a role, although the Treasury market stabilized a bit Tuesday after the yield on the 10-year note hit a 21-month high. (Full story)

The Texas Instrument news is "tapping into anxiety about the tech cycle slowing down," said Ned Riley, chief investment strategist at Riley Asset Management, particularly as it follow's Intel's recent warning.

At the same time, the rise in long-term bond yields is getting in the way of the stock market, Riley added.

He said that while he thinks that longer term, the market outlook remains positive, stocks are probably not going to be able to rise much beyond recent highs until the Federal Reserve more clearly indicates that its rate-hiking cycle is done with.

Stock and bond investors have already factored in that the central bank will boost short term rates for a 15th consecutive time at the next FOMC meeting later this month. However, there are questions about when it will stop beyond that.

There are no economic reports on tap for Wednesday. As such, trade will likely continue to be influenced by the direction of the bond market and oil prices. Wednesday brings the release of the weekly oil inventories report.

One stock likely to be active Wednesday is Google, which said late Tuesday that it had accidentally released certain growth projections on its Web site, and that some of them were inaccurate.

Google (down $3.65 to $364.45, Research) shares fell 2 percent in extended-hours trading.

As of 5:30 p.m. ET, Nasdaq and S&P futures pointed to a flat open for stocks Wednesday, when fair value is taken into account.

Late Monday in its mid-quarter update Texas Instruments narrowed its first-quarter earnings and revenue forecast to the high end of the range it gave in January.

While the revision set the midpoint of the range above analysts' targets, TI (down $1.07 to $31.26, Research) stock still sank 3.3 percent Tuesday, amid disappointment that the new forecast was not even more upbeat.

That was partly because last week, fellow chipmaker Intel (down $0.24 to $20.06, Research) warned that first-quarter revenue would miss forecasts.

The news gave tech investors, particularly semiconductor investors, an excuse to take profits.

The Philadelphia Semiconductor (down 15.13 to 513.44, Charts) index, or the SOX, lost almost 3 percent. All 19 of its components slipped, led by Marvell Technology (down $3.37 to $58.96, Research) Broadcom (down $2.03 to $45.85, Research) and Micron Technology (down $0.62 to $14.98, Research).

"Texas Instruments' numbers were broadly in line with estimates, but there may have been some disappointment that they didn't raise the high end of the range," said Michael Sheldon, chief market strategist at Spencer Clarke.

At the same time, the SOX is in a precarious place technically, he said, noting it could be in for further declines. The sector tends to move in tandem with the Nasdaq.

Oil, home building, telecom, biotech and financial stocks also declined.

Home building was hit particularly hard, with the Dow Jones Home Construction (down $20.74 to $843.05, Research) index losing 2.4 percent.

The Philadelphia Oil Service (Charts) sector index lost 2.4 percent.

The Dow 30 had see-sawed across the unchanged line through the session, managing to end higher thanks to gains in select stocks, including Honeywell (up $0.52 to $41.38, Research), Procter & Gamble (up $0.63 to $60.30, Research) and General Motors (up $0.48 to $20.29, Research).

AT&T (down $0.49 to $26.53, Research) lost 1.8 percent and was the Dow's biggest loser, suffering profit-taking after jumping soundly on Monday on news that it is buying BellSouth in a $67 billion stock deal.

A number of other telecoms and networkers slipped as well.

Market breadth was negative. On the New York Stock Exchange, decliners topped advancers eight to three on volume of 1.66 billion shares. On the Nasdaq, losers topped winners by more than two to one on volume of 1.94 billion shares.

Treasury prices crept higher after falling for three straight sessions. The yield on the 10-year note fell to 4.73 percent, down moderately from 4.76 percent early Tuesday -- a 21-month high.

But that did little to assuage fears about higher yields -- which have surged over the last week amid worries about higher global rates.

A spike in Treasury yields sent stocks lower Monday, with investors retreating from economically-sensitive areas of the market.

To an extent, equities are being held hostage by the bond market this week, Sheldon said, noting the yield on the 10-year has risen above recent highs and appears to be heading toward a level last hit in 2004. The move means the 10-year yield could keep climbing in the short run, which would put added pressure on stocks.

Investors also eyed the downwardly revised reading on fourth-quarter productivity.

U.S. light crude oil for April delivery lost 83 cents to settle at $61.58 a barrel on the New York Mercantile Exchange.

In currency trading, the dollar rallied versus the euro and gained more modestly versus the yen.

COMEX gold for April delivery fell $2.80 to settle at $554 an ounce.

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