Tech and internet stocks were under pressure on Monday amid a market sell-off in high growth stocks. The declines came amid a rising 10-year treasury yield (^TNX). The Nasdaq (^IXIC) is down 6% over the last six trading sessions.
Microsoft (MSFT) is down about 10% over the last five trading sessions.
Amazon is down for a fifth straight session. The stock declined more than 3% on Monday, reaching intraday levels it hasn’t seen since May.
Alphabet (GOOGL, GOOG) is also on its fifth day of declines, trading at its lowest level since October.
Netflix (NFLX) is down more than 11% over the last five sessions, and more than 20% down from its November peak.
Apple (AAPL), which briefly topped a valuation of $3 trillion just one week ago, is down more than 7% over the last five sessions.
Meta (FB), which had lost the least ground out of the FAANG stocks last week, was off more than 3% on Monday.
“We’ve never seen equities priced quite this high,” Tematica Research Chief Macro Strategist Lenore Hawkins told Yahoo Finance Live.
“We’ve never seen ownership at the household levels of equities anywhere near this level,” she said. “The level of household balance sheets with equities is about $43 trillion. That’s about twice the US economy.”
For years, “it was all about momentum and growth, so households have been riding it all the way up, which means they’re really vulnerable right now,” said Hawkins.
“You got killed over the past 10 years if you didn’t buy the dip,” said Hawkins. “It’s all been about growth and those tech stocks.”
“The economy is changing dramatically because of tech,” said the strategist.
“But those things that are happening in tech are also deflationary pressures because what we’re doing with technology is having the ability to increase productivity dramatically.”
Despite the recent volatility, some strategists still believe mega caps are the place to be.
“As economic conditions start to slow down, you do need to see balance sheets very very strong,” Principal Global Investors Chief Strategist Seema Shah told Yahoo Finance Live.
“Although this is quite a challenging time, we do still have some faith in mega-cap tech names, especially from a stability perspective for your portfolio,” she added.
Ines is a markets reporter covering stocks from the floor of the New York Stock Exchange. Follow her on Twitter at @ines_ferre
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