- Investors are fleeing technology stocks at a pace not seen since the dot-com bubble of 2000.
- They pulled $3.5 billion out of the popular Invesco QQQ Trust Series 1 ETF, which tracks the Nasdaq 100 index, on Friday. That marked the biggest daily outflow since October 2000.
- The Nasdaq 100 index is sitting more than 10% from recent highs, putting it in correction territory.
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That marked the biggest single-day outflow since October 2000, amid the dot-com bubble.
The mass exit reflects the unease in the tech sector that’s sent the Nasdaq 100 tumbling into correction territory in recent weeks. On Monday, the gauge sat roughly 13% below its September 2 peak.
The Invesco QQQ ETF, the biggest technology exchange-traded fund available to investors, had more than $120 billion in assets as of Friday.
The three-week skid in technology stocks comes as investors grapple with uncertainty surrounding the November presidential election, additional fiscal stimulus measures in response to the COVID-19 pandemic, and the development and rollout of a COVID-19 vaccine.
The Nasdaq 100 is on pace to lose more than 10% in September, which would be its worst month since 2008.
On Monday, despite continued selling in the index, the Nasdaq 100 outperformed the Dow Jones industrial average and the S&P 500, suggesting that investors may warm up to tech stocks again as economic uncertainty persists.
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