Is the US tech stocks rally ended?

Is the US tech stocks rally ended?

Yesterday has been a negative day for the US tech stocks market.

The tech-heavy Nasdaq Composite has gone down by 2.05% marking the biggest one-day decline in more than four months.

Shares of Tesla and Netflix were the most shorted yesterday, and they respectively reported a loss of 9.7% and 8.4%.

The electric vehicle maker, Tesla, has mainly gone down after Wednesday’s report about the profit margins that slipped due to the continued price reduction of its cars.

For Netflix, the reason why its shares dropped, is the disappointment regarding the miss of the expected sales.

Investors are now questioning if the bull run, boosted by the hype for Artificial Intelligence, has ended.

$2.4 Trillion Options expire today

Today, Friday 21 July is a special day for the US stock market because about $2.4 trillion of options contracts are going to expire.

This event is called OpEx and will add volatility to the markets due to possible actions that Wall Street’s managers will do when the contract’s mature date has been reached.

It is worth mentioning that on Monday, 24 July, will take effect the special Nasdaq stock rebalance where the big seven tech stocks will see their dominance reduced, inside the index, in favour of the small caps.

Portfolio update

I am rebalancing my portfolio gradually.

I am adding new positions and will close some in the upcoming months.

If you are already copying my portfolio, please keep the copy open.

If you are thinking of copying me, now could be the right time, if you can invest for the long term (years).

Remember to copy the open trades to optimize the copy.

Remember to set the stop loss on the copy at the minimum level, so you don’t get stopped if there is a correction.

Thank you, everyone. Have a nice day!

 

Follow me on social media

LinkedIn

Facebook

Twitter

Instagram

YouTube

eToro Disclaimer

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. {etoroCFDrisk}% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.

Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.

Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.

Crypto Investing Risk Warning

Crypto assets are highly volatile. Your capital is at risk.
Don’t invest unless you’re prepared to lose all the money you invest.
This is a high-risk investment, and you should not expect to be protected if something goes wrong.

Read the full disclaimer

Sign up to receive my latest articles in your inbox

I agree that my data is used according to the privacy policy



Author: Federica Montella
eToro Popular Investor, food lover and blogger. Stock trader and Popular Investor at eToro. I am on a mission to find the best restaurants and food to eat.