The technology sector has outperformed the S&P 500 index by roughly 25% over the last year and with four 1-trillion dollar companies representing almost 17% of the S&P 500, some comparisons are being made to the technology bubble of the late 1990s.
Coronavirus concerns continue to weigh on markets as investors focus on the spread of the virus.
With the sharp selloff in markets over recent days on uncertainty surrounding the coronavirus, many technical indicators are now suggesting the market is becoming stretched to the downside and the risk/reward ratio is improving.
Stocks continued to add to losses on Tuesday over coronavirus concerns. The CDC warned about a possible spread of the virus to the US.
The coronavirus is weighing on investor sentiment again. Safe haven assets such as gold and US Treasuries are receiving a bid while global markets have taken a step back.
Since mid-January, we have been monitoring the coronavirus, which is the deadly SARS-like virus that could have the potential to disrupt global economic activity.