Tech Stocks Weigh on Broad-Based Indexes

It was another tough week for tech stocks. The information technology sector, the best performing sector within the S&P 500 index year-to-date, tumbled to become the worst performer for the second week running. The S&P IT sector fell 2.24% over the week (-2.34% the previous week) and the FT WilSHire 4500 Technology Index lost 2.12% while the S&P 500 edged down 0.16% over the week (-1.29% the previous week). In a striking turn around, the utilities sector, which has generally lagged behind with poor performance this year, surprisingly became the highest gaining sector over the week and the month. 

According to Trackinsight’s thematic taxonomy, Information Technology ETFs aligned to the Cloud Computing theme suffered the greatest losses. With a total 1.41% loss in value, Cloud Computing was the worst performing theme last week, an unexpected turn given its stellar performance so far this year (30.77% YTD). 

The bearish trend was particularly noticeable among some key players such as MongoDB and Yext which are major components of the WisdomTree Cloud Computing Fund (WCLD).  These companies saw their stocks dive by 4.02% and 27.46% respectively, while WCLD experienced a drop of 1.60%.  

Indeed significant losses were recorded across the universe of ETFs focused on cloud computing - including  Global X Cloud Computing UCITS ETF (CLO) which registered a larger setback at 2.730% - an unexpected downturn given the strength of information technology and cloud-related assets in 2023 to date.

Group Data: Information Technology, Cloud Computing

Index Data

Funds Specific Data: WCLD, FSKY, CLO