NEW YORK (CNNMoney.com) -- Dell's profit warning dragged tech stocks lower Friday and as the morning wore on the rest of the market followed.

The tech-heavy Nasdaq composite (down 19.31 to 2,020.11, Charts) sank about 1 percent.

The Dow Jones Industrial average (down 41.23 to 10,886.87, Charts) and the broader Standard & Poor's 500 (down 5.80 to 1,243.33, Charts) index each sank as much as 0.7 percent, though they were off their lows about an hour into the session.

Stocks slipped Thursday on disappointment about Intel's quarterly results. The tech duress continued Friday, this time with Dell (down $2.49 to $19.61, Charts).

The personal computer maker tumbled 13 percent after warning that quarterly results will miss forecasts due to its aggressive price-cutting campaign.

Rival Hewlett-Packard (down $1.32 to $30.48, Charts) slipped 3 percent in sympathy.

On the upside, Microsoft (up $0.93 to $23.78, Charts) rallied nearly 5 percent after the company posted results Thursday that topped expectations, issued a bullish 2007 forecast and announced a $40 billion share buyback plan.

U.S. light crude oil for September delivery jumped 57 cents to $74.84 a barrel in electronic trading.

Treasury prices rose, lowering the yield on the benchmark 10-year note to 5.01 percent from around 5.03 percent late Thursday. Treasury prices and yields move in opposite directions.

The dollar slumped against the yen and the euro.

COMEX gold for August delivery added $1 to $633.50 an ounce.

Overseas, stocks extended losses in midday trading in Europe and ended lower across most of Asia.