Tech stocks got hammered Monday, leading the broader market lower as the software sector faced its worst selloff in nearly three years.
On Monday, tech stocks were the worst performing sector of the S&P 500 index’s
11 sectors, dropping 3.9%, as the index declined 1.7%, and the Technology Select Sector SPDR ETF
was down 3.6%. Tech stocks have had a rough time since the beginning of October as the sector has seen three other sessions of 3% or more losses since Oct. 10.
The tech-heavy Nasdaq Composite Index
fell 2.9%. Additionally, the Dow Jones Industrial Index
was down 1.8%. Common to all those, shares of Apple Inc.
fell 3.8% following a report that the company was planning a second round of iPhone production cuts.
The heaviest losses in tech, however, appeared to show up in the software sector. The iShares North American Tech-Software ETF
was down 5.3% Monday. One of the hardest hit stocks on the ETF Monday was Salesforce.com Inc.
which shed 8%. For both the ETF and Salesforce, Monday was shaping up to be the worst one-day percentage drop since Feb. 5, 2016, according to FactSet data.
The five heaviest weighted stocks on the IGV index are Oracle Corp.
Salesforce, and Intuit Inc.
Cybersecurity stocks weren’t faring too much better as the ETFMG Prime Cyber Security ETF
fell 4.3%, with shares of Zscaler Inc.
and Forescout Technologies Inc.
leading the sector lower with sharp losses.
The battered chip sector PHLX Semiconductor Index
fell 3.2%, led lower by the bleed out of shares of Nvidia Corp.
which dropped more than 9% Monday, following last week, when they shed 20%. Nvidia shares are currently down nearly 23% for the year and are 49% off their high of $292.76 set on Oct. 2. Advanced Micro Devices
shares were down 6.7%, and Micron Technology Inc. shares fell 6.1%,
The First Trust Cloud Computing ETF
which includes VMware Inc., Cisco Systems Inc., and Juniper Networks Inc., fell 3.6%, while other cloud stocks like Dropbox Inc.
, Atlassian Corp.
and Workday Inc.
all fell 7% or more Monday.
In comparison, here’s how the broader markets and tech areas have fared on the year:
|Index/ETF||Year-to-date performance||% off 52-week high||date of 52-week high|