Tech stocks — the darlings of the market this year — got hammered yesterday, with the S&P 500’s tech sector (XLK) reporting one of its worst trading days of the year. And the tech heavy Nasdaq (^IXIC) suffered its biggest drop in over three months.
Will investors buy the tech dip? Well if history is any guide, yes. When tech sold off in June and again in September, investors were ready to pounce. And it was exactly one year ago that tech sold off at the end of November, only to rebound two days later.
Google parent Alphabet (GOOGL) shares are also slightly higher on reports that Google is considering bringing its home-automation unit Nest under its hardware umbrella, according The Wall Street Journal. This move would reverse an aspect of the 2015 split as Google tries to compete with Amazon in the smart home market.
Meanwhile, retail (XRT) got a big bump as tech dropped yesterday. Shares of Sears (SHLD) are surging today after reporting earnings that beat Wall Street expectations. The struggling retailer said a reduced footprint and specialized stores are helping its turnaround.