Washington - The Nasdaq on Monday closed down 6.6%, after the House of Representatives rejected the $700 billion bailout of the nation's financial system. Following a 228-205 defeat of the bill, House leaders -- amid heavily partisan squabbling -- vowed to redouble their efforts to get a similar bill passed on the coming days. Along with the downturn on the Nasdaq, the Dow Jones industrial average also saw its worst drop on record, falling 778 points on Monday.

Analysts noted that even with an eventual passage of legislation, a downturn in technology spending -- both on the consumer and corporate level -- is likely in the coming months.

Apple's (NASD: AAPL) shares fell nearly 18%, pulled down by analyst downgrades for the company due to predictions of a drop in IT spending; shares of Google (NASD: GOOG) also fell nearly 11%.

Digital Media Wire's own DMW 100 Index of publicly-traded companies in the digital media sector was down 8.88% on Monday.

Related Links:
http://news.cnet.com/8301-13860_3-10053604-56.html

http://snipurl.com/3y3d1 (DMW 100 Index)