Tech has been the leader of the market rally since the financial crisis. We have noted in previous articles that the NASDAQ index has finally reached the peak reached in 2000 just before the DotCom and Tech Bubble burst. It took just over 17 years to do it, Just think, if you were unfortunate to buy the QQQs in 2000, you just broke even. If you were smart enough to buy in 2003 or 2010, you have made out quite well. As with most things in life, timing matters.
But something happened on the way to paradise. On Friday, Melissa Lee noted that the tech sector had its worst week since 2011. It has lost about $510 billion in market capitalization. Ouch! Of note, it was the popular names that got hit hard. Facebook down 14%, Alphabet down 10%, Oracle down 14%, Micron down 10%, Apple down 7%, and Nvidia was down 7%. During yesterday’s show, Dan Nathan took a closer look at the chips stocks. We would like to take moment to provide some additional color.
