Qualcomm Inc QCOM.O fell 5.3% after it warned that difficult economic conditions and a slowdown in smartphone demand could hit its mainstay handset chips business. Fears of runaway inflation and aggressive monetary policy tightening biting into economic growth have spooked markets, after gross domestic product fell at a 0.9% annualized rate last quarter, the Commerce Department said in its advance GDP estimate. "Today's reading only adds fuel to the fire that we are in or entering a recession," said Mike Loewengart, managing director at E*Trade from Morgan Stanley.