Technology stocks and sector-related exchange traded funds lagged the equities market on Thursday as investors rotate out of the growth style and a stronger dollar crimps the sector’s outlook.
The PowerShares QQQ (NasdaqGM: QQQ), which tracks the tech heavy Nasdaq-100 Index, dropped 1.6% Thursday while the Technology Select Sector SPDR (NYSEArca: XLK) fell 2.0%. Over the past month, QQQ gained 0.4% and XLK added 0.2%.
Meanwhile, inverse or short tech ETF plays jumped, with the Direxion Dialy Technology Bear 1x Shares (NYSEArca: TECZ) 1.2% higher. For more aggressive traders, the Direxion Daily Technology Bear 3X Shares (NYSEArca: TECS) jumped 6.2% and the ProShares UltraShort Technology (NYSEArca: REW) gained 4.2%.
Weakness in Facebook (NasdaqGS: FB), Microsoft (NasdaqGS: MSFT) and Apple (NasdaqGS: AAPL) dragged the Nasdaq to near a two-week low while the S&P 500 Technology Index experienced its worst daily performance since August, reports Yashaswini Swamynathan for Reuters.