Nasdaq on verge of bear market

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Tech stocks Amazon.com Inc., Netflix Inc. and Tesla Motors Inc. are all of a sudden struggling, CNNMoney reports.


All three stocks are down at least 23 percent this year. Other tech stocks have fared far worse.


Their downfall is part of the broader plunge for the tech-heavy Nasdaq composite index. That index is down 14 percent this year, almost twice as much as the Dow Jones industrial average.


“It’s a risk-off environment — when the focus is on hopes and dreams, it’s very easy to invest in tech companies that don’t have current earnings. But when the environment changes, they get hurt,” said David Kelly, chief global strategist at JPMorgan Funds.


The Nasdaq is down 18 percent from its all-time intraday high, which was set in July. If it gets below 4,185.55, it will be considered a bear market. which signals a 20 percent decline from previous highs.


The Nasdaq got dangerously close to that level on Monday and is trading around 4,278 on Tuesday due to worries about oil prices.