Sure, with news of a $700 billion bailout in flux (now rejected), banks failing and an overwhelming credit crunch, news regarding the tech sector may be a little obscured. But it's enough to see the Nasdaq's 4.7% 9.14% decline -- a triple digit decline day for the Nasdaq and an over two-year low!!! -- to the Dow's 2.7% 6.98% decline to see that the real story is now bigger than Wall Street.

[Quotes updated for closing prices].

Remember, this incredible financial crisis is just the tip of the iceberg. Even with the bailout, the U.S. economy will not escape a recession. Similarly, global economies are feeling the pinch. And with economic hardships consumer and company spending goes out the window for anything from consumer electronics to company IT and advertising spending.

They all plunged today: from software: Microsoft Corp. (NASDAQ: MSFT) - down about 2.5% 8.7%, Oracle (NASDAQ: ORCL) - down nearly 3% 9%, to internet stocks: Google Inc. (NASDAQ: GOOG) - down over 7.3% 11.6% setting a 52-week low below $400 a share, Yahoo! (NASDAQ: YHOO) - down 10.7%%, Amazon (NASDAQ: AMZN) - down 5% 10.4% and setting new 52-week low, eBay (NASDAQ: EBAY) - down about 5.7% 11.6% and in danger of setting a new 52-week low today as well, to hardware stocks: Dell Inc. (NASDAQ: DELL) - down over 4% 9.3%%, Hewlett-Packard Co. (NYSE: HPQ) - down about 3% 6.8%, Intel Corp. (NASDAQ: INTC) - down over 4% 10%, IBM (NYSE: IBM) - down about 3% 4.1%, Cisco (NASDAQ: CSCO) - down over 4.5% 8.5%.

Indeed, several analysts issued reports noting concern about demand for high-tech products in the slowing economy. Doug Reid of Thomas Weisel cut back his estimates for Hewlett-Packard and Dell among others. Analysts for RBC Capital also cut down estimates for several technology firms for the same reasons.

There were several events during the last week that are almost certainly clues to what is likely to happen in certain industries and the economy in general as Wall Street looks forward to the July through September period. The week was dominated by the launch of Apple's (NASDAQ: AAPL) iPhone and the extended glow for AT&T (NYSE: T), but in the broader picture, the news means very little.

Looking at other news:

Oil closed over $70 for the first time since late last summer. While the news may be good for Exxon (NYSE: XOM) and other big exploration and refinery companies, it will hurt industries from air freight to automotive.

Dell (NASDAQ: DELL) hit a 52-week high, a sign that Wall Street believes the PC industry may have a good second half, especially with Hewlett-Packard (NYSE: HPQ) also trading near its high point.

An unusually broad number of stocks representing several important industries hit 52-week lows. While it would be expected that home builders like Beazer (NYSE: BZH) would struggle in a poor housing market, Blackstone (NYSE: BX), Circuit City (NYSE: CC), and one of the nation's largest banks, Wachovia (NYSE: WB) also touched bottoms.

Poor eBay. Surely the recent slide is not all its own fault. In fact, tech stocks (and especially Apple) are being blamed for its decline today. Yet it's special (bad special) that I had to dust off a three-year chart to show you today.

Just gaze at that. Ick! eBay is, indeed, at a low not seen for nearly three years, closing today at $26.58, down 64 cents or 2.35% on the day. It's not all Apple's fault, to be sure; investors are worried with concerns over the company's management trickle-out (it's not enough to be called an "exodus" -- yet), and perhaps there is some lingering competitive concern over the move by Christie's to hold its own auctions, or worries over Google Checkout. Either way, times are not the best for the company's stock.

I'd like to know what all those sellers are thinking. Really! I mean, look at this chart. There we have it, down down and more down. MSFT is now at its 52-week low -- in fact, the stock hasn't been this low since October 4, 2002. I know! Today, the stock closed at $23.17, down 3.5%. It's now trading 15% below its high last week. Ouch. Guess everyone does believe Gartner's report about Vista delays.

Those who are selling right now? In my opinion, it's irrational depression. Why sell at the low? Panic, I suppose, but it seems highly, um, foolish. Tim Beyers, he who is Motley Foolish but not, you know, foolish, agrees. He argues that, even if you buy the idea that Microsoft might be taking second fiddle to Google (the Evil-Empire-come-lately), it's still a good company to own. After all, they are rife with cash-ola and they absolutely, totally dominate the average laptop. Come on now, look around you at the coffee shop. How many laptops don't have Windows-based software?

Unless you're tapping away at my favorite worker-owned coffee collective (where everyone either has an iBook or a built-from-scratch Linux geek-machine), the answer is: few. If I owned Mr. Softee right now, I'd be holding. And if I owned a pile full of cash right now, I'd be buying. There may be more down. But I'd bet at least some of my children's future on the long-term up.

At 12 minutes until market close, Microsoft stock is just below its 52-week low of $24.00. The chart looks ugly and volume is more than double average. Will it close at a low? If so, will you buy, sell or stay far, far away?

Update: at 4:05 p.m., various reports are that MSFT closed just above $24.00 -- CNBC's ticker scroll is saying $24.01, while delayed quotes at AOL and Yahoo! are saying, variously, $24.06 and $24.03.

Update (2): At 4:15 p.m., everyone agrees: $24.01. If MSFT was a boxer, it would have struggled up as the ref yelled "te..." Talk about your almost-misses!