Blue-chip stocks fell yesterday, extending Tuesday's 225-point plunge by the Dow Jones industrial average and pushing the index to its lowest level in three months.

But strength among technology shares and smaller-company issues bolstered the broad market, with the Nasdaq composite index rising back toward record territory.

The Dow closed at 10,524.07, a loss of 74.40 points. The Standard and Poor's 500-stock index rose 2.93 to 1,310.51, and the Nasdaq composite rose 37.07 to 2,858.17, about 30 points shy of a new high.

Declining issues outnumbered advancers by a four-to-three margin on the New York Stock Exchange, with 1,242 up, 1,711 down and 578 unchanged.

The Russell 2000 index of smaller companies rose 1.04 to 427.54.