Nasdaq records first 7-week losing streak since 2002

Tech companies haven’t seen a sell-off like that since 2001 and the bursting of the dot-com bubble.

The Nasdaq fell 3.8% this week, the seventh consecutive week of decline. This is the longest losing streak for the heavy tech index in 21 years.

Inflation, rising interest rates, the war in Ukraine and the pandemic shutdown in China are creating a pathetic market overall and a particularly brutal strain on investors in technology and equities. growth, following historic spikes in recent years.

The Federal Reserve has signaled that it will continue to raise interest rates to combat inflation, leading to fears that higher capital costs will combine with waning consumer confidence to erode interest rates. profit.

The Nasdaq has lost more than 29% since peaking on November 19, closing Friday at 11,354.62. The S&P 500 isn’t that bad, but it’s still hit bear market territory on Friday, that is, 20% down from its high.

Cisco was one of the biggest losers of technology for the week, down 13%, behind the computer networking giant expected unexpected revenue drop in the current quarter. Once seen as a lifeline for the economy due to its popularity among businesses, Cisco says its guidance reflects the company’s decision to shut down operations in Russia and Belarus along with shortages. supply due to the Covid-19 lockdown in China and uncertainty about when things will improve.

“Given this uncertainty, we are being realistic about the current environment and cautious about our outlook, quarterly,” the company said on its earnings call.

Dell CEO Michael Dell delivers a keynote address during the Oracle Open World 2013 conference on September 25, 2013 in San Francisco, California.

Justin Sullivan | beautiful pictures

Dellreported results on Thursday, down more than 11% for the week. Shopify, which sells software to electronic retailers, is down nearly 10 percent. Cloud software company Working day fell about 9% after analysts downgraded the stock due to recession fears. Security software provider Okta slip 14%.

Stocks related to billionaires Elon Musk also suffered a hit. Twittercurrently being acquired by the Tesla CEO for $54.20 per share, fell 6% this week to $38.29. Tesla 14% decrease.

In Big Tech, Apple down 6.5%, suffering eight straight weeks of decline. Alphabet down 6%, while Amazon is down about 5%.

Nasdaq is now down 20% for the quarter and is on track for its worst quarterly performance since period 4 in 2008.

SENTRY: CNBC interview with Cisco CEO Chuck Robbins

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