3 reasons tech stocks, once hot, are suddenly not

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A tech selloff caused the Nasdaq and S&P 500 to have their worst days since 2022. Here's why tech stocks are fading.

A selloff in technology stocks Wednesday drove the Nasdaq and S&P 500 indices to their worst performances since 2022. The slump in high-tech follows a year-long rally by the 'Magnificent Seven,' a group of seven industry giants that have led markets into record terrain.The slump continued on Thursday, with the tech-heavy Nasdaq index slipping 0.5% in morning trade. Chipmaker Nvidia shed 1.4% and Google-owner Alphabet fell 1.

While their quarterly earnings weren't disasters, they raised questions among investors about which other market heavyweights' financial results could fall short of expectations, said Sam Stovall, chief investment strategist at CFRA.'How many disappointments are we likely to see? Maybe let's sell first and ask questions later,' he said.Great expectations can be hard to meetProfit expectations are high for U.S. companies broadly, but particularly so for the Magnificent Seven.

 

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