Markets sold off heavily Thursday as profit warnings and poor U.S. retail sales numbers suggested that the much-talked about rebound in the North American economy might be just talk.

The TSE 300 composite index dropped 126.46 points, of 1.67%, to 7451.20. Market volume was noticeably lighter than yesterday with 150 million shares changing hands.

Ten of the TSE’s 14 sub-indices suffered losses, led by a large 5.61% drop in the industrial products sub-index.

Tech bellwether Nortel Networks led the decline, giving up $1.50 to $11.64 after rivals Lucent and Ciena announced gloomy numbers or forecasts.

Celestica tumbled $6.05 to $68.75 as the telecom warning weighed heavily; Research in Motion fell $2.51 to $37.39.

Other big tech losers included JDS Uniphase, down $1.77 to $16.76; Descartes Systems, down $1.46 to $11.12; and ATI Technologies, off $1.43 to $19.83.

Bombardier fell 49¢ to $14.96.

BCE rose 71¢ to $36.24, adding to yesterday’s gains.

Market momentum was overwhelmingly negative as declines stepped on advances 669 to 392.

Venture capital stocks also gave up ground today. The S&P/CDNX Composite Index closed down 11.73 points at 985.37. Trading was heavy on a volume of 40 million shares worth, with 173 advances, and 255 declines.

In New York, U.S. markets got off to a rocky start after the release of disappointing November retail sales.

Several high-profile profit warnings ignited waves of selling in tech shares Thursday, hammering in the Nasdaq and dragging the Dow down with it.

The Nasdaq composite finished down 65 points, or 3.2%, at 1947, while the Dow Jones industrial average tumbled 128 points, or 1.3%, to 9,766. The S&P 500 was off about 18 points, or 1.5%, to 1,119.