A renewed tech-led selloff sweeps through U.S. equities, with the Nasdaq leading losses as growth fears mount and the VIX spikes.
The Nasdaq 100 is bearing the brunt of the rotation out of technology as jittery investors respond to hawkish Fed rhetoric and regulatory risks. Heavyweight tech names are sliding, pulling the index sharply lower in a risk-off session.
Investors are dumping high-multiple tech stocks as bond yields rise and fears of tighter regulation mount.
Technical support sits at the 18,500 level; a break below could open the door to 18,000.
The S&P 500 is being dragged down by tech weakness, with the selloff broadening to financials and consumer discretionary sectors. The index is on track for its worst week in over a month.
Technology comprises over 27% of the index, making it highly sensitive to tech sector moves.
Immediate support is at 5,800; a breach may target 5,700.
The CBOE Volatility Index spiked over 25 as the tech-led rout intensified, signaling rising fear among traders. Options demand surged in a classic flight to hedges.
It signals extreme fear and expectations of large daily swings in the S&P 500.
If the selloff persists, the VIX could test the 30 level; a market bounce would likely pull it back quickly.
U.S. stock markets came under heavy pressure as technology shares extended losses into a second consecutive session. Rising bond yields and antitrust concerns spooked investors in high-valuation growth names, dragging the Nasdaq 100 down over 2%. The rout spilled into the broader S&P 500, while the VIX volatility index surged above 25, reflecting deepening market fear.
Rising bond yields and regulatory threats are prompting investors to reduce exposure to expensive growth stocks.
The S&P 500 is following the Nasdaq lower, with losses accelerating in afternoon trading.
Upcoming economic data and Federal Reserve commentary could either quell or amplify the volatility.