The Nasdaq Composite Index showed its biggest one-day fall in nearly 2 and a half years: Tech Stocks Flop

The Nasdaq Composite index notched its largest one-day slide in nearly 2 and half years as investors resumed selling risky biotechnology and other technology stocks. What this means? It is now time for the Tech Stocks Flop.

Tech Stocks Flop:

Now the first thing people think of when they hear that Tech stocks are flopping is “HA! Facebook is finally failing.” Actually Facebook has been up the past few days. However, companies such as Netflix are starting to fall. And if you even look back a few days, both companies nearly fell 5%.

But what I am really talking about when I say “Tech Stocks” are the REAL tech stocks. Companies that are involved in things like biotechnology research (which is down about 6% across the market).

Why is this happening? Well there are a variety of reasons. First of all they have been doing pretty well across the board. Secondly, people want to see this development.

Jim Paulsen, Chief Investment Strategist at Wells Capital Management said, “It’s human nature really. When the momentum stocks ran up and then started to selloff, people wanted to unload but they didn’t want to do it in a downturn. Instead, they waited until they saw strength so they could feel better about themselves and they sold today. Yesterday we were up, so people wanted to unload today.”

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What does this mean?

Well although the market has generally been better since the most recent financial crisis there are still some ramifications. Many traders are shifting gears into dividend-paying, or more defensive stocks. These companies are bigger and consistent companies such as McDonalds or AT&T. Read More: Click Here

It is everyones hope that these Tech stocks continue to rise and stop falling. wut with constant scares of hacking and failure in products, people are losing the faith in these tech stocks.