Technology stocks have slumped. What investors never know is how long it will take for the inevitable sector reversal.
Here’s how the 11 sectors of the S&P 500 Index have performed over the past month, excluding dividends: Wedbush analyst Dan Ives attributed the pullback in technology stocks to the fear of rising interest rates and concern over growth-stock valuations in a note to clients on Oct. 5. He went on to predict the pressure on tech stocks would be “short-lived” and that the sector would be up 10% from here through the end of 2021.
Biggest large-cap tech drops over the past month To list tech stocks, we began with the S&P 500 information technology sector and then added tech-oriented names in other sectors, such as Facebook Inc. FB, Twitter Inc. TWTR and videogame developers in the communications sector and Amazon.com Inc. AMZN in the consumer discretionary sector. We then added tech companies in the Nasdaq-100 that aren’t included in the S&P 500.