This stock market rally in the first half of 2023 was built on the back of technology stocks, as investors bet on a resilient US consumer and hype surrounding artificial intelligence to keep the shares soaring.
But that support has wobbled all month, as a Federal Reserve bent on keeping rates above 5% well into next year and flagging consumer confidence triggered a selloff that just shoved tech stocks into a correction. The broader S&P 500 Index dropped 1.5% Tuesday to the lowest since June 7.
The brunt of the selling has been in tech, where the bruising stretch left the S&P 500 Information Technology Index down more than 10% from its July high. The gauge also just clocked its third 1% down session in the last five. Meanwhile, confidence among consumers fell to a four-month low, showcasing cracks in the economy’s main engine.
Read the full story on Bloomberg here.