(Bloomberg) -- The rush to get out of U.S. tech stocks entered its third day Monday as concerns mounted over how the storied FAANG bloc will fare amid rising interest rates and slower growth.
All of the FAANGs retreated, with Facebook Inc (NASDAQ:FB). sinking 3.3 percent and Netflix Inc (NASDAQ:NFLX). falling as much as 5.3 percent. The FANG index retreated 2.1 percent, widening its three-day loss to 8.6 percent. This compares with a 1.2 percent loss for the S&P 500 over the same time.
Investors have been bailing from the space since the Facebook’s earnings hit July 25, prompting the biggest market-cap decline in U.S. history. Market darlings since the 2016 presidential election, the group of tech megacaps has seen investors heading for exits with the advance seen as having gone too far, too fast.
“Sentiment is turning sour in FANG, especially after earnings,” Michael Antonelli, an institutional equity sales trader and managing director at Robert W. Baird & Co, said in an email. “They are dragging the Nasdaq 100 down by its feet.”
The selloff has widened losses in the S&P 500 Information Technology Index to 5.1 percent, the biggest three-day retreat since March. The rout erased $240 billion from the market capitalization of the S&P 500 Information Technology Index to $6.3 trillion, from $6.6 trillion before Facebook reported a miss on its user growth.
The Nasdaq 100 Index retreated 1.4 percent on Monday, widening its two-day loss to 2.8 percent, while the largest exchange-traded fund tracking the index lost 0.9 percent. Investors pulled $1.4 billion from the ETF last week in the biggest withdrawal in seven weeks.
