Following the sell-off that engulfed big tech stocks last week, the Nasdaq Composite had its worst week in months.
The six biggest tech stocks (Tesla, Apple, Facebook, Amazon, Alphabet and Microsoft) briefly lost more than $1 trillion in their collective market cap at one point this week, sparking fears over the tech bubble according to Investing.com
All three of the major averages posted steep declines for the week.
The Nasdaq composite, which includes many of the superstar tech stocks that have been the focus of the market’s recent selling, slumped 4.1% to notch its biggest weekly fall since March.
Through the tumultuous week, the S&P 500 was down 2.5% – its worst one-week performance since June and its first back-to-back weekly loss in four months, while the Dow lost 1.7%.
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Weekly performance of major tech companies;
Tesla (NASDAQ:TSLA) plunging 10.9%
Apple (NASDAQ:AAPL) tumbling 7.4%.
Facebook (NASDAQ:FB) and Amazon (NASDAQ:AMZN) each lost more than 5%.
Alphabet (NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT) were both down more than 4%.
Tech stocks have soared through the pandemic as their businesses boomed, with coronavirus accelerating a shift to online life that has been beneficial to them.
The fall in tech stocks last week was seen by many analysts as an overdue correction. as critics have long said that tech stocks were due for a slide after soaring too high through the summer.
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“The technology sell-off continues,” said Phil Orlando, chief equity market strategist at Federated Hermes. “We don’t think this is anything more than a technical pullback that’s cleansing. It’s healthy and was anticipated.”
Written by;
Ifunanya Ikueze
