Today, a number of big tech stocks are in the red ahead of some important post-market earnings calls. Specifically, this month’s selloff seems to be continuing in light of Microsoft (NASDAQ:MSFT) and Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) financial results due out this afternoon. So, why are tech stocks down?
Well, as the markets continue to digest impending interest rate hikes, tech stocks have been one of the more brutal casualties of the uncertainty. Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Tesla (NASDAQ:TSLA) and more closed in the red heading today on what’s shaping up to be the fourth-straight week of losses for the S&P 500 and Nasdaq Composite. In particular, the tech-heavy Nasdaq is continuing to suffer from recent pullbacks, shedding about 9% in the first quarter of 2022.
Today, the S&P and Nasdaq are eying losses of about 2.8% and 3.9%, respectively. Many of the mega-cap tech stocks that rose to new heights last year are now falling — and some by substantial margins.
Tech Stocks Down as Markets Slump
Currently, AAPL, GOOGL and MSFT stocks are all down between 3% and 4%. However, the big loser today is undoubtedly Tesla; shares of TSLA stock are down more than 12% for the day. It seems investors in the electric vehicle titan remain unimpressed by CEO Elon Musk’s recent Twitter (NYSE:TWTR) purchase.
Indeed, Musk’s Twitter fiasco may be an additional bearish force pushing down tech stocks today. The mogul’s impromptu multi-billion dollar acquisition has shaken up the tech world. So, it’s no surprise that investors are being a bit sheepish, especially given the already uncertain nature of the markets these days.
Amazon has also been unable to avoid the recent bearish wave. Today, the e-commerce giant closed down by roughly 4.5%. Overall, some analysts suspect impending interest rate hikes will burst a growth-based bubble, affecting many major tech operators.
This week will likely offer investors further insight into market conditions moving forward, depending on the results of some important earnings calls.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.