Tech stocks are mired in their longest weekly losing streak since dot-com bust

Tech firms have not seen a selloff like since 2001 and the bursting of the dot-com bubble.

The Nasdaq declined 3.8% this week, falling for a seventh straight week. It’s the longest losing streak for the tech-heavy index in 21 years.

Inflation, rising rates of interest, the warfare in Ukraine and pandemic lockdowns in China are including as much as a disastrous market in normal and a very brutal stretch for traders in expertise and progress stocks, after historic rallies in current years.

The Federal Reserve has signaled it would proceed to extend charges to battle inflation, resulting in concern that increased prices of capital will mix with deteriorating shopper confidence to eat away at revenue margins.

The Nasdaq has misplaced over 29% since its peak on Nov. 19, closing on Friday at 11,354.62. The S&P 500 hasn’t fared as badly, nevertheless it nonetheless touched bear market territory on Friday, that means a 20% drop from its excessive.

Cisco was among the many largest tech losers for the week, falling 13%, after the pc networking large projected an surprising income drop in the present quarter. Once seen as a bellwether for the financial system given its prevalence in enterprises, Cisco mentioned its steering displays the corporate’s choice to stop operations in Russia and Belarus coupled with provide shortages as a consequence of Covid-19 lockdowns in China and uncertainty about when issues will enhance.

“Given this uncertainty, we are being sensible in regards to the present setting and erring on the aspect of warning in phrases of our outlook, taking it one quarter at a time,” the corporate mentioned on its earnings name.

Dell, which stories outcomes on Thursday, tumbled over 11% for the week. Shopify, which sells software program for e-retailers, dropped virtually 10%. Cloud software program firm Workday fell about 9% after analysts downgraded the inventory on recession fears. Security software program vendor Okta slid 14%.

Stocks related to billionaire Elon Musk additionally took a success. Twitter, which is at the moment in the method of being bought by the Tesla CEO for $54.20 per share, fell 6% this week to $38.29. Tesla tumbled 14%.

Within Big Tech, Apple dropped 6.5%, struggling its eight-straight weekly drop. Alphabet sank 6%, whereas Amazon fell by about 5%.

The Nasdaq is now down 20% for the quarter and is on tempo for its worst quarterly efficiency since the fourth interval of 2008.

WATCH: CNBC’s interview with Cisco CEO Chuck Robbins