Big tech names facing losses like Apple and Facebook may be the ones getting most of the headlines during the sector’s sell-off, but the entire space is taking a hit.
As of Monday, 19 of the 73 stocks that make up the Technology Select Sector SPDR ETF (XLK), or 26 percent, were trading in correction territory. A correction is a decline of at least 10 percent from a high.
IBM, Hewlett Packard Enterprise, and chipmaker Nvidia, last year’s best-performing S&P 500 component, fell into a correction during Monday trading.
Technology encountered renewed pressure on Monday, building on the sector’s sharp sell-off from Friday which knocked the Nasdaq composite from a record high, as valuation concerns mounted.
The XLK fell as much as 2.23 percent Monday before closing 0.59 percent lower. On Friday, the ETF shed 2.47 percent. Tech has been the stalwart of the U.S. stock market in 2017, rising 17.6 percent in the period to handily outperform the S&P 500 and other sectors.
Shares of Apple dropped 2.46 percent Monday while fellow tech giants Amazon, Alphabet, Facebook, and Microsoft also pulled back.
“It’ll be interesting to watch whether this is just a blip or if we see continued weakness in these names,” said Tom Wright, director of equities at JMP Securities
Source: http://cnb.cx/2sXnXMg
