NasdaqThe index ended the week down 3.8 percent, marking a seven-week losing streak, the longest losing streak in 21 years, in a sell-off not seen in tech stocks since the dotcom bubble in 2001.
Inflation, higher interest rates, the Russia-Ukrainian war and China’s epidemic prevention lockdown are exacerbating the catastrophic situation for the entire market, which is especially cruel for investors in technology and growth stocks that have experienced historic gains in recent years.
The U.S. Federal Reserve has signaled it will keep raising interest rates to fight inflation, adding to fears that rising capital costs and deteriorating consumer confidence will eat into corporate profit margins.
NasdaqThe index is down 20 percent so far this quarter, on track for its worst quarterly performance since the fourth quarter of 2008. The index has fallen more than 29 percent since peaking on Nov. 19, closing at 11,354.62 on Friday (20).
S&P 500 The index’s performance, while not as bad, still hit bear market territory on Friday, implying a drop of more than 20% from its highs.
Cisco (CSCO-US) was the biggest loser in tech stocks this week, with the computing internet giant dropping 13% after forecasting an unexpected drop in revenue for the quarter. Cisco said its forecast reflected the decision to halt sales in Russia and Belarus, as well as uncertainty about when the situation would improve due to supply shortages caused by the lockdown in China.
“Given this uncertainty, we take a pragmatic view of the current environment and are cautious about the outlook, one quarter at a time,” Cisco said on the earnings call.
Dell (DELL-US) fell more than 11% for the week after dismal earnings on Thursday; e-commerce software company Shopify (SHOP-US) fell 7 percent; cloud software company Workday (WDAY-US) fell about 9 percent after analysts were downgraded on recession fears; security software provider Okta (OKTA-US) fell 14%.
Tech giants are also not immune. apple (AAPL-US) fell for eight straight weeks, down 6.5% for the week; Google parent Alphabet (GOOGL-US) fell 6 percent; e-commerce giant Amazon (AMZN-US) fell about 5%.