- Reuters / Sebastian Derungs
Tech companies in the S&P 500 dropped as much as 2.7% on Thursday amid renewed selling in the mega-caps that have led the market higher this year.
FANG stocks – Facebook, Amazon, Netflix and Google – each slipped more than 1.3%, while the tech-heavy Nasdaq 100 index fell 2% to its lowest level since mid-May.
The benchmark S&P 500 declined 0.8% to 2,420.56 at 2:42 p.m. Eastern. The CBOE Volatility Index, or VIX, which serves as a measure of market fear and uncertainty, spiked 28%, its biggest increase since May 17.
The market’s reliance on its heavily-weighted tech leaders has been an issue before, most recently on June 9, when the Nasdaq 100 plunged 2.4% in a single day following negative news on Apple.
Investors are growing increasingly wary of the space as they rotate out of so-called growth stocks amid monetary policy tightening from the Federal Reserve.
Consumer stocks were another weak spot for the S&P 500, with both the discretionary and staples groups dropping at least 1%. In the grocery space, Blue Apron traded slightly higher after a disappointing IPO that saw the company cut its range by 40% the day before pricing.
Weakness in tech also put a damper on a rally in financial shares spurred by the announcement of more than $90 billion in share buybacks. As much as 2% higher in earlier trading, the the S&P 500 Financials Index is now up 0.9%.
- Markets Insider