Technology stocks are suffering from the brunt of the latest market selloff, putting a spotlight on how an expanded downturn in the sector could affect the broader equity indexes.
- Following Monday’s sharp fall, the S&P 500 technology sector is 6.7% lower since the overall S&P 500 closed at a record high on September 2, compared with a 5.2% drop for the broader index during that period.
- Meanwhile, the tech-heavy Nasdaq Composite is 7.3% lower from its September 7 closing high and rebounding closer to a 10% correction.
- The plunge comes amid a series of worries that struck markets in recent weeks, including a looming unwind of Fed’s easy money policies, an increase in Treasury yields, and a nasty stalemate among lawmakers over the U.S. debt ceiling.
Many investors are slow to cut their exposure to technology-related stocks that have led the markets and are expected to post strong earnings growth even when the economic climate worsens.
S&P 500 down -1.30%, Nasdaq Composite down -2.14%Source: Reuters