US NASDAQ 100 Index

The Nasdaq was hit overnight after Cisco Systems plunged 12% as a tepid margin outlook signalled higher memory-chip prices are taking a toll. Most of the megacaps retreated and an ETF tracking software companies slumped more than 3%. Wall Street’s jitters over the outlook for the industry that has powered the bull market have grown despite solid results from megacaps, with traders dumping a broad range of tech shares. Considering the almost +60% advance by US tech from last April’s low, further weakness wouldn’t surprise

• We are initially targeting a test of the 24,800 area, another 3% lower, but a deeper move wouldn’t surprise us.