Is the Massive Bleeding of U.S. Tech Stocks a Crash? Wall Street: Funds Are Massively Rotating, 'These Types of Stocks' Quietly Taking Over

Although U.S. tech stocks continue to decline, Wall Street strategists believe that recent market volatility looks more like a healthy rotation of funds rather than the beginning of another major decline. The S&P 500 index has been largely stagnant over the past six weeks but is currently only about 2% lower than the closing historical high recorded on June 2. According to MarketWatch, semiconductor stocks continued their decline last week, giving back significant gains since the second quarter. However, the sharp decline of one of the market's most important stocks did not have a significant impact on the major indices, as energy, retail, banking, and transportation stocks were simultaneously rising. The U.S. 'Tech Seven Giants' briefly rebounded after a weak performance in the second quarter, but last week, following IBM's issuance of a profit warning, the entire technology sector was sold off, and the seven giants' stock prices also fell with semiconductor stocks.