When it comes to the stock market, America’s technology giants have become a harbinger of more pain to come.
If Facebook, Apple or Google looked shaky this year — as investors worried about growth, regulation or mismanagement — the rest of the market felt it. In recent weeks, as these companies have succumbed to concerns about the global economy, slowing profits or privacy concerns, they have led the decline in stocks.
Now, technology companies are dragging stocks into an ominous territory that investors have not seen in nearly a decade: a severe decline known as a bear market.
The tech-heavy Nasdaq closed on Friday at 6332.99, down almost 22 percent from its August peak, meaning it has officially entered a bear market. The S&P 500 and Dow Jones industrial average, both of which also include the biggest tech companies, are not far behind after falling 17.5 percent and 16.3 percent from their respective highs. After a month of heavy losses, stocks are on track for their worst year since 2008.
S&P 500: -12%
Nasdaq 100: -13%
Russell 2000: -16%
Crude Oil: -11%$FB: -11%$AAPL: -16%$AMZN: -19%$NFLX: -14%$GOOGL: -11%$C: -22%$GS: -16%$MS: -15%$BAC: -17%$JPM: -15%
20+ Yr Treasuries: +5%
Volatility Index: +67%
— Charlie Bilello (@charliebilello) December 21, 2018