Shares of Microsoft fell with the broader stock market to hit their lowest point since 1998 earlier today, before bouncing back to close up more than 4 percent on the day, at $21.25. But in the meantime, a series of analyst reports raised new questions about the company's financial prospects amid the global economic slowdown.

The latest decline started last night, when Intel significantly reduced its revenue expectations for the fourth quarter. An excerpt from the Intel news release:

The company now expects fourth-quarter revenue to be $9 billion, plus or minus $300 million, lower than the previous expectation of between $10.1 billion and $10.9 billion. Revenue is being affected by significantly weaker than expected demand in all geographies and market segments.

Intel and Microsoft have long been closely linked as the major suppliers of PC operating systems and microprocessors. Intel's warning prompted many analysts to reduce their expectations for Microsoft's business. See this roundup by Eric Savitz of Barron's Tech Trader Daily for the full rundown.

Microsoft has already cut its forecasts for the current fiscal year, warning that economic uncertainty could hurt demand for its products.