Internet behemoths Twitter and Tencent plunged into bear market territory yesterday as nerves about tech stock valuations dragged down the major indexes.
Tencent bounced from that low to close the day more than 16% down over the three months while Twitter remains 20.7% off its previous high over the same period.
The Nasdaq composte index has fallen almost 6% over that time. Yesterday saw the biggest one day falls in the tech sector in three years, against a backdrop of broader market decline.
‘Technology stocks were hit the hardest as investors decided to take profits and dump stocks,’noted lee Mumford of trading platform Spreadex.
‘It seems we could be entering into a bull market with investors believing stocks are valuated way too high. The CBOE Volatility Index rallied over 20 percent yesterday on speculation volatility will remain.’