Blue-chip stocks rallied from a deep sell-off induced by more earnings jitters yesterday but a drop in technology shares knocked the Nasdaq market to its biggest single-day point loss since the 1987 crash.

The Dow Jones industrial average ended down 91.85 points, or 1.1 per cent, at 7,847.03 after being down more than 180 points on "double witching" expirations of individual and index options.

On Thursday, the index plunged 119 points and for the week, it lost 198.18 points.

The Nasdaq composite index, which is laden with technology companies, tumbled 32.81 points, or 1.9 per cent, at 1,666.85. It was the index's biggest drop in point terms since it fell 46.12 points on October 19, 1987.

But in percentage terms the Nadsaq's drop yesterday was nowhere near Black Monday's 11.3 per cent decline.