Tech-stock wreck destroys $529B this year
The bad year for stocks is getting worse by the minute – and tech investors are feeling the brunt of the pain.
The 462 information technology stocks in the broad Russell 3000 index have shredded a total of $529 billion this year thanks to their average decline of 14%, according to a USA TODAY analysis of data from S&P Capital IQ.
Crashing stocks have served up a brutal reminder why betting on speculative stocks in the technology sector is dangerous business when investors get nervous about growth. The tech-heavy Nasdaq composite index is the worst hit major index of the major ones investors watch – sliding 13% this year while the broader Standard & Poor’s 500 is off just 8%.
The Nasdaq’s losses from the high are starting to get nervously close to the unofficial definition of a bear market: A decline of 20% or more. The Nasdaq is down more than 16% from its highest point over the past 12 months. The S&P 500, on the other hand, is down just 11.8%… (more)