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Is the US tech stocks rally ended?

ByFederica Montella
Published 21/07/2023, 13:00
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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 (NASDAQ:NFLX) were the most shorted yesterday, and they respectively reported a loss of 9.7% and 8.4%.

The electric vehicle maker, Tesla (NASDAQ:TSLA), 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.

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