Here's What's Probably Behind Friday's Tech Slide
- The more momentum a stock had, the more it plunged on Friday
- Such uniformity suggests a wider strategy, says Soc Gen
Why Tech Stocks Are Suddenly Selling Off
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Systematic, computer-driven strategies probably had a hand in Friday’s tech plunge.
On the surface, that stocks sold off wasn’t unusual. But U.S. technology mega-cap stocks were especially hard-hit, as the Nasdaq 100 Index tumbled 2.4 percent compared with a less than 0.1 percent decline in the S&P 500 Index. Everything from a Goldman Sachs Group Inc. note to a short seller’s tweet was blamed for the move.