Technology stocks have slumped. What investors never know is how long it will take for the inevitable sector reversal.
A list of the worst-performing technology stocks over the past month among the S&P 500 Index
SPX
and the Nasdaq 100 Index
NDX
is below.
Here’s how the 11 sectors of the S&P 500 Index have performed over the past month, excluding dividends:
|
Index
|
Price change – one month
|
Price change – 2021
|
Price change – 2020
|
Price change since end of 2019
|
|
Health Care
|
-8.1%
|
10.5%
|
11.4%
|
23.1%
|
|
Real Estate
|
-7.6%
|
23.4%
|
-5.2%
|
17.0%
|
|
Information Technology
|
-7.1%
|
13.4%
|
42.2%
|
61.3%
|
|
Communication Services
|
-6.9%
|
20.3%
|
22.2%
|
47.0%
|
|
Utilities
|
-6.4%
|
3.1%
|
-2.8%
|
0.2%
|
|
Materials
|
-6.0%
|
10.2%
|
18.1%
|
30.2%
|
|
Industrials
|
-5.4%
|
11.3%
|
9.0%
|
21.3%
|
|
Consumer Staples
|
-5.4%
|
2.5%
|
7.6%
|
10.3%
|
|
Consumer Discretionary
|
-3.0%
|
9.3%
|
32.1%
|
44.3%
|
|
Financials
|
-0.2%
|
28.4%
|
-4.1%
|
23.2%
|
|
Energy
|
14.2%
|
45.2%
|
-37.3%
|
-9.0%
|
|
S&P 500 Index
|
-5.2%
|
14.5%
|
16.3%
|
33.1%
|
|
Source: FactSet
|
All in all, 2021 has been a fine year for stock market performance, especially when considering that it has followed what turned out to be a good 2020 for most sectors. The technology sector was the third-worst-performing sector from Sept. 3 through Oct. 4, but it has been the clear leader from the end of 2019 through the Covid-19 pandemic.
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.
“[T]he tech growth stories are being massively underestimated by the Street in
our opinion with 3Q earnings a major positive catalyst for the tech sector looking
ahead,” Ives wrote.
The overwhelming tendency for companies…
For your shopping list: These big tech stocks have dropped as much as
Technology stocks have slumped. What investors never know is how long it will take for the inevitable sector reversal.
A list of the worst-performing technology stocks over the past month among the S&P 500 Index
SPX
and the Nasdaq 100 Index
NDX
is below.
Here’s how the 11 sectors of the S&P 500 Index have performed over the past month, excluding dividends:
All in all, 2021 has been a fine year for stock market performance, especially when considering that it has followed what turned out to be a good 2020 for most sectors. The technology sector was the third-worst-performing sector from Sept. 3 through Oct. 4, but it has been the clear leader from the end of 2019 through the Covid-19 pandemic.
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.
“[T]he tech growth stories are being massively underestimated by the Street in
our opinion with 3Q earnings a major positive catalyst for the tech sector looking
ahead,” Ives wrote.
The overwhelming tendency for companies…
Read More: For your shopping list: These big tech stocks have dropped as much as