Tech stocks are threatening to close at a fresh 4-week low – MarketWatch

This post was originally published on this site

It’s looking rough for tech stocks early Thursday, as the Nasdaq-100 is poised to fall sharply.

Futures for the tech-heavy index NQU7, -1.10%  were recently down 1% to 5,674.25. That suggests the gauge NDX, -0.43%  could be on pace to end at its lowest level since May 19, or about four weeks ago.

Tech stocks XLK, -0.48%  saw heavy selling on Monday and last Friday, with the Nasdaq Composite COMP, -0.41%  losing 2.3% over those two sessions. But they rallied Tuesday and then pulled back modestly Wednesday.

Check out: Why the Nasdaq suffered its biggest two-session drop in 9 months

And read: Tech stocks needed a correction, but how big will it be?

Their recent slump has coincided with widespread worries that they’ve become too pricey due to big year-to-date gains. Some traders are saying another leg down is underway after the mid-week breather:

The Nasdaq-100 is a closely followed tech gauge, with household names for its five largest components: Apple AAPL, -0.98%  , Google parent Alphabet GOOG, -0.28% GOOGL, -0.26% , Microsoft MSFT, -0.54%  , Amazon.com AMZN, -0.44%  and Facebook FB, -0.29%  .

A popular ETF that tracks the index — the PowerShares QQQ Trust QQQ, -0.43%  — has $50.5 billion in investor money.

Read more: Here are the five FAAMG stocks ranked by money flows

And see: U.S. stocks poised to slide, hit by hawkish Fed and fresh tech selloff

More from MarketWatch

More Coverage