US STOCKS-Market drops as Cisco fuels tech decline

(Updates to midday)

By Ellis Mnyandu

NEW YORK, Feb 7 (Reuters) - U.S. stocks fell in choppy trading on Thursday, led lower by technology shares after Cisco Systems Inc (CSCO.O: Quote, Profile, Research) warned of slowing orders, heightening concern about an economic slowdown.

Cisco, whose products form the backbone of many corporate communications networks, declined 2.5 percent, driving the Nasdaq composite index deeper into bear market territory.

"Cisco's news is what started the breakdown in technology," said Victor Pugliese, director of listed equity trading at Broadpoint Securities in San Francisco.

"In general, the market is very, very volatile ... there's a lot of uncertainty."

The Dow Jones industrial average .DJI was down 30.57 points, or 0.25 percent, at 12,169.53. The Standard & Poor's 500 Index .SPX was down 1.08 points, or 0.08 percent, at 1,325.37. The Nasdaq Composite Index .IXIC was down 8.48 points, or 0.37 percent, at 2,270.27.

Stocks were on track for a fourth straight day of declines, and the Nasdaq composite index was in a bear market, have fallen more than 20 percent from its October closing high.

Cisco's chief executive warned of a rapid slowdown in U.S. and European orders late on Wednesday. For details, see [ID:nN06279426]. Cisco shares dropped to $22.51 on the Nasdaq.