“These growth stocks just got so over-valued it is only natural to see some air come out of that balloon. That could continue for a while,” Stephen Massocca, senior vice president at Wedbush Securities, told Reuters. “But in terms of the rest of the market that doesn’t have those kinds of extreme valuations, I think we are probably pretty close to the end of the decline.”
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Furthermore, some are concerned about the potential negative ramifications of the midterm elections on growth stocks, notably tech sector names.
“Probably the most pervasive headwind is concern about midterm elections,” Kristina Hooper, chief global market strategist at Invesco, told Reuters. “That is weighing down stocks, particularly technology as there is greater concern about regulation.”
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