Tech ETFs Plunge Amid Nasdaq-100 and S&P500 Decline
US markets fell sharply this week, with tech ETFs leading the decline. The S&P500 and Nasdaq 100 suffered heavy losses as semiconductor stocks came under acute pressure, dragging the tech sector down.
US financial markets faced a tough week, with major indices and ETFs posting significant losses. The S&P 500 fell by 4.25%, while the tech-heavy Nasdaq-100 dropped even further, losing 5.89%.
Tech Stocks Take a Nosedive
The IT sector, which had previously been the best performer and contributor within the S&P 500, plummeted this week, shedding more than 7% of its market capitalization. A 20-basis point drop in the US 10-year Treasury yield, which often supports growth stocks, was not enough to lift tech companies. Instead, the sector struggled under the weight of losses, especially in the semiconductor industry.
The shares of major semiconductor industry giants posted double-digit losses, with NVIDIA and Broadcom down 13.86% and 15.85% respectively. The contagion also impacted other behemoths like Microsoft and Google-Alphabet, which fell 3.70% and 7.86% over the week.
Tech ETFs Hit Hard
The iShares NASDAQ 100 Index ETF CAD-Hedged (XQQ) and BMO NASDAQ 100 Equity Index ETF (ZQQ) dropped 5.91% and 5.92% this week, mirroring the sharp decline in the tech-heavy index. ETFs tracking semiconductor stocks dropped even more sharply with the Global X Semiconductor Index ETF (CHPS) down 11.16% and the iShares Semiconductor Index ETF (XCHP) down 11.44%.
Here’s a comparison between Nasdaq-100 and Tech ETFs.
Group Data
Funds Specific Data: XQQ, TEC, ZQQ, XIT, CIAI, CHPS, XCHP
Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.
