Tech stocks lagging
China’s slowdown has affected several stocks
Many businesses outside the tech sector have also expressed their concern about China’s slowdown, which has increased volatility recently. Microsoft (MSFT), Facebook (FB), and Amazon (AMZN), gearing up to announce their earnings this week, fell ~2% yesterday. These losses have put the tech sector behind the financial, industrial, and energy sectors this year, though it is still in positive territory. Tech stocks could continue to struggle this year, as several years of double-digit returns have left them with a lofty valuation that doesn’t appeal to investors considering the sector’s headwinds.