On Thursday, the Nasdaq-100 fell 6.36%, marking a 15% decline from its high on October 6, while the S&P tech sector dropped 7%, down 17% from the same peak. The Dow Industrials and S&P 500 also experienced notable declines of 3.44% and 4.36%, respectively.
Jim Cramer characterized the situation as a 'bear market,' emphasizing a significant outflow from big tech stocks and suggesting that stocks outside of the tech sector may have opportunities to perform better as the market stabilizes. In contrast, Chinese ETFs showed resilience, with the KraneShares CSI China Internet ETF (KWEB) rising 1.8%, despite being down 38% from its November high.
Moderna's stock surged nearly 330% in three months, while Under Armour and Bloomin' Brands faced declines of 19% and 11.6%, respectively. The consumer staples sector, often seen as a safe haven during downturns, fell slightly by 0.7%.
Additionally, credit default swap prices for major companies like CoreWeave and Amazon have increased, indicating rising concerns about credit risk in the tech sector. Overall, the market's current trajectory suggests a reevaluation of investment strategies, particularly regarding tech stocks and potential opportunities in other sectors