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.

Subscribe to our free daily newsletters!
Please enter your email address to subscribe to ETF Trends' newsletters featuring latest news and educational events.