{"id":1486415,"date":"2022-05-20T20:30:11","date_gmt":"2022-05-21T00:30:11","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1486415"},"modified":"2022-05-20T20:30:14","modified_gmt":"2022-05-21T00:30:14","slug":"summer-of-pain-tech-stocks-see-worst-losing-streak-since-dot-com-bubble","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/summer-of-pain-tech-stocks-see-worst-losing-streak-since-dot-com-bubble\/","title":{"rendered":"\u2018Summer Of Pain\u2019: Tech Stocks See Worst Losing Streak Since Dot-Com Bubble"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fsummer-of-pain-tech-stocks-see-worst-losing-streak-since-dot-com-bubble%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1486415&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div><img decoding=\"async\" src=\"https:\/\/dw-wp-production.imgix.net\/2021\/06\/GettyImages-1139474661.jpg?w=1200&#038;h=800&#038;ixlib=react-9.3.0\" class=\"ff-og-image-inserted\" alt=\"image\" \/><\/div>\n<p><span>The technology sector is witnessing its most severe losing streak in over two decades.<\/span><\/p>\n<p><span>The Nasdaq \u2014 a technology-heavy stock index \u2014 has endured seven weeks of losses, including 3.8% declines during the week of May 16. The drops constitute the worst declines since the dot-com selloff in 2001, according to <\/span><a href=\"https:\/\/www.cnbc.com\/2022\/05\/20\/nasdaq-records-first-seven-week-losing-streak-since-2002.html\"><span>CNBC<\/span><\/a><span>.<\/span><\/p>\n<p><span>\u201cInflation, rising interest rates, the war in Ukraine and pandemic lockdowns in China are adding up to a disastrous market in general and a particularly brutal stretch for investors in technology and growth stocks, after historic rallies in recent years,\u201d the outlet reported. \u201cThe Federal Reserve has signaled it will continue to increase rates to fight inflation, leading to concern that higher costs of capital will combine with deteriorating consumer confidence to eat away at profit margins.\u201d<\/span><\/p>\n<p><span>Companies such as Tesla, Cisco, Dell, Twitter, and Tesla experienced large drops this week \u2014 14%, 13%, 11%, and 6%, respectively.<\/span><\/p>\n<p><span>Guggenheim Partners Global Chief Investment Officer Scott Minerd told <\/span><a href=\"https:\/\/www.marketwatch.com\/story\/a-summer-of-pain-the-nasdaq-composite-could-plunge-75-from-peak-s-p-500-skid-45-from-its-top-warns-guggenheims-scott-minerd-11652901040\"><span>MarketWatch<\/span><\/a><span> that the United States is in for a \u201csummer of pain\u201d as the Federal Reserve attempts to curb inflation by hiking interest rates. Indeed, Fed Chair Jerome Powell said at a recent <\/span><a href=\"https:\/\/www.wsj.com\/articles\/feds-powell-to-take-wsj-questions-on-inflation-and-economic-outlook-11652779802?mod=mktw&#038;mod=article_inline\"><span>conference<\/span><\/a><span> that \u201crestoring price stability is an unconditional need\u201d and \u201csomething we have to do.\u201d<\/span><\/p>\n<p><span>According to Minerd, the United States is bound for \u201ca pretty severe selloff\u201d since the Fed appears to have \u201cvery little concern about the continuation of what I think now is a bear market.\u201d<\/span><\/p>\n<p><span>\u201cWith the passage of time as the Fed continues to hike, we will find ourselves experiencing the effects of increasingly restrictive monetary policy,\u201d Minerd predicted in research reviewed by MarketWatch. \u201cWell before it reaches this terminal rate the Fed will increase the risk of overshooting, causing a financial accident, and starting a recession.\u201d<\/span><\/p>\n<p><span>The Fed had dropped its benchmark interest rate to near-zero levels at the outset of COVID-19 and the lockdown-induced recession in a bid to stimulate economic activity. Over the past few months, however, the Fed began <\/span><a href=\"https:\/\/www.dailywire.com\/news\/the-fed-jacks-key-rate-up-half-point-as-inflation-surges\"><span>aggressively increasing rates<\/span><\/a><span> in response to rampant inflation <\/span><a href=\"https:\/\/www.dailywire.com\/news\/inflation-worries-remain-near-record-highs-boding-poorly-for-economy\"><span>pressuring consumers<\/span><\/a><span>.<\/span><\/p>\n<p><span>Former Federal Reserve Chair Ben Bernanke said during a Monday <\/span><a href=\"https:\/\/www.dailywire.com\/news\/former-fed-chair-ben-bernanke-calls-feds-delayed-inflation-response-a-mistake\"><span>interview<\/span><\/a><span> that the central bank\u2019s delayed inflation response \u201cwas a mistake.\u201d<\/span><\/p>\n<p><span>\u201cThe question is why did they delay that. \u2026 Why did they delay their response? I think in retrospect, yes, it was a mistake,\u201d he said. \u201cAnd I think they agree it was a mistake.\u201d<\/span><\/p>\n<p><span>\u201cThere\u2019s a lot of support for the fact that the Fed is tightening now, even though obviously we see the effects in markets,\u201d Bernanke continued. \u201cYou know, we\u2019ll see the effects in house prices, etc. So those are some ways in which the current situation I think is better because we learned a lot from the \u201870s.\u201d<\/span><\/p>\n<p><span>The April 2022 Survey of Consumer Expectations revealed that <\/span><a href=\"https:\/\/www.dailywire.com\/news\/inflation-worries-remain-near-record-highs-boding-poorly-for-economy\"><span>Americans are deeply worried about inflation<\/span><\/a><span> and expect higher price levels in the long run. Inflation expectations at the one-year horizon fell from 6.6% to 6.3% in March, even as three-year horizon expectations rose from 3.7% to 3.9%. Both data series remain near their highs.<\/span><\/p>\n<p><span>According to University of Florida economist Hector Sandoval, inflation plays a major role in American households\u2019 worries \u2014 thereby threatening to slow economic activity.<\/span><\/p>\n<p><span>\u201cCurrently, spending intentions have been trending downward over the last few months as inflation has risen consistently, reaching record levels and prompting the Fed to increase interest rates in the short run,\u201d Sandoval said in response to sentiment among Florida consumers dropping 4.4% in April.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The technology sector is witnessing its most severe losing streak in over two decades.The Nasdaq \u2014 a technology-heavy stock index \u2014 has endured seven weeks of losses, including 3.8% declines<\/p>\n","protected":false},"author":99,"featured_media":1486420,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1486415","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1486415","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/99"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1486415"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1486415\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1486420"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1486415"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1486415"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1486415"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}