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| EDITOR'S NOTE
For those trying to figure out why the market has fallen every single week this month, look no further than tech.
The S&P 500 dropped 0.6% last week for its third consecutive weekly decline. That marks the broader market index's longest weekly slide in about a year.
To be sure, things looked far more promising in the first half of the week. The S&P 500 rallied more than 1% on Monday and followed that up with a 0.5% gain on Tuesday. Those advances were led by the tech sector, which rose 2.1% on Monday and 1% on Tuesday.
Market sentiment was lifted early in the week in part by a slew of corporate deal-making activity, including Oracle confirming an agreement with TikTok-owner ByteDance to become its "trusted technology provider" in the U.S. The anticipation around the IPO from cloud company Snowflake also gave a boost to the broader market and tech. Snowflake's stock more than doubled in its public market debut.
Those early week gains for the S&P 500 were quickly undone as tech posted losses on Wednesday, Thursday and Friday. When the dust settled on Friday, the S&P 500 tech sector was down 1% for the week. Facebook, Amazon and Apple dropped 5.3%, 5.2% and 4.6%, respectively, last week. Netflix slid 2.5% and Alphabet pulled back by 4.3%. Microsoft retreated by 1.8%.
"Technology stocks continue to be a drag on markets," said Mark Hackett, chief of investment research at Nationwide. "This group has led the rally since March, but has seen heightened volatility from elevated options activity, largely from retail investors."
Heading into the new week, tech stocks could finally find some buyers, Patti Domm writes.
MICHAEL SANTOLI'S MARKET COLUMN
YOUR WEEKEND BRIEFING
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