Nasdaq Set to Continue Friday's Selloff as Tech Stocks Set Up for Another Tumble
New York June 12) A selloff that dragged the Nasdaq from its record highs on Friday, June 9, was set to resume on Monday, June 12, as investors continued to flee high-momentum tech names.
S&P 500 futures were down 0.24%, Dow Jones Industrial Average futures fell 0.16%, and Nasdaq futures slumped 0.87%.
A swift and unexpected selloff in tech surprised markets on Friday. The tech-heavy Nasdaq tumbled 1.8% for the day and 1.55% for the week, its worst performance since the week ended Dec. 16. The Nasdaq had hit an intraday record earlier in the session. The sudden selloff was partially tied to a note from Goldman Sachs that said low volatility in Facebook Inc. (FB) , Amazon Inc. (AMZN) , Microsoft Corp. (MSFT) and Google parent Alphabet Inc. (GOOGL) may be blinding investors to risks including regulation and cyclicality.
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Industry leaders bore some of the worst of the sector's losses to end last week. Apple Inc. (AAPL) , Alphabet, Alibaba Group Holding (BABA) , Facebook, Cisco Systems Inc. (CSCO) and Intel Corp. (INTC) were all sharply lower to end the week, while the Technology Select Sector SPDR ETF (XLK) slumped 2.47%.
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"Technology stocks have been rallying aggressively in recent times, as momentum-chasing speculators bought names such as Alphabet, Amazon, Apple, Facebook and et al. like there was no tomorrow," said Fawad Razaqzada, market analyst at Forex.com. "Such bullish runs often end abruptly and that is what may have happened [Friday] ... Now that the sector is falling, it could drag the major indices lower and undermine investor confidence in other sectors."
Source: TheStreet
