Tech teeters on the brink of a recession

The tech sector took another beating Friday as fears of a global recession fed a widespread market selloff. The pervasive selling mood has intensified after a string of third quarter earnings announcements. Citing concerns about the ailing economy and a sudden slump in orders, several big players offered bleak sales outlooks and lowered their financial targets. Tech's recovery hinges on the buying power of consumers and large businesses. Declining home values and rising unemployment have put consumers under pressure. And drooping sales in a tough credit market haven't exactly encouraged businesses to beef up IT spending. It's possible that "2009 could be a trough" where stocks hit a bottom and start to rally ahead of a recovery. But given how hard it is to predict the severity of the downturn, pegging the timing of the recovery could prove even harder to get right.