Tech stocks briefly touched “correction” territory on Friday, as the recent drop in the
extended beyond 10%. At the worst session levels of the index, it was down 11.9% since its February 12 close at 14,095.47. But the Nasdaq rallied green in mid-afternoon trading.
Even after recovering from deep losses this morning, tech stocks are down about 4% for the week and roughly 1% so far this year, pressured by rising interest rates and a turnover in stocks. technologies towards more sensitive sectors from the economic point of view, such as energy. , industrial and financial. The 10-year Treasury yield has risen slightly to 1.56%, but eclipsed the 1.6% level earlier in Friday’s session.
The market continues to impose particularly severe punishment on stocks that led the way in 2020: high multiple, high growth, as well as new public cloud stocks. the
ARK Innovation ETF
(ARKK), a popular exchange-traded fund with large positions in recent high-flying companies such as Tesla (TSLA),
and Teledoc (RDOC), is down 2.4% on the session and down 26% from its peak in mid-February.
Helping the index on Friday were a series of bullish recommendations on legacy tech stocks.
(ORCL) trades much higher in a Barclays update,
turned bullish on
(CSCO), Goldman raised its rating by
hit the table on
(MSFT). Analysts are increasingly focused on the potential for enterprise technology hardware and software stocks to get a boost from an expected rebound in spending later this year. All four stocks are trading higher.
Cloud stocks have gotten mixed, but with many names like
Zoom Video Communications
(SHOP) everyone stays red in the session. Chip stocks are mostly higher as investors look for ways to play on continued supply constraints, with so-called “e-tail” stocks spreading recent losses as the market anticipates a reopening of the economy to end of this year.
About mid-session, the Nasdaq Composite had recovered its previous losses and was sitting near the flat line at 12,736.66. That’s roughly 50 points above correction territory.
Write to Eric J. Savitz at [email protected]