Are tech stocks really losing their shine?

By Paul Reid

19 September 2023

As week 38 kicks off, news channels are taking a bearish tone for tech stocks in their morning chats, but very few financial articles support that narrative so far. Exness lists 22 technology stocks from around the world. From that list, 21 of them fell over the last 7 days. Only the China-based computer hardware manufacturer Canaan Inc (CAN) went up — 4.44% from $1.80 (USD) to $1.88. So yes, it seems that tech stocks are falling across the board, but is this really a noteworthy trend shift or just negative hype that will be here today, and gone tomorrow?

Tech stocks in indices

Tech stocks have been a pillar of growth over the last 12 months for US indices, but recent events suggest that tech sector's dominance may be waning, potentially impacting US indices as a whole.

The cause for the slump could stem from the reports that Taiwan's TSMC (Taiwan Semiconductor Manufacturing Company), a major player in chipmaking, told major suppliers to delay delivery of high-end chip-making equipment.

Even chip designer Arm was not immune to the negativity, sliding 4.5% on its second day of trading, following completion of Wall Street’s largest initial public offering in almost two years. 

All US indices show decline on the charts since Friday, 15 September.

  • US500 -1.31% from $4518 to $4459.

  • US30 -0.98% from $35,031 to $34,687

  • USTECH100 -1.87% from $15,525 to $15,235

Notably, while the tech stock dip is worldwide, the impact on US indices is much stronger.

Asia outperforms

Adding a glimmer of hope to the global picture, official data from China revealed that retail sales and industrial production in August outperformed analysts' expectations. This boost was particularly encouraging for consumer cyclical and basic materials stocks in Europe, as these sectors are inextricably linked to Chinese consumer spending.

Asian indices did not suffer quite the same fate as American.

  • Hong Kong's Hang Seng + 0.8%, 

  • Tokyo's Topix +1%. 

  • China's CSI 300 index -0.7%.

While Beijing's recent initiatives to stimulate the economy and stabilize financial markets have sparked optimism, a single month of positive data is not enough to confirm a sustainable path to recovery. So tight Stop Loss and Take Profit are still recommended if you plan to trade HK50 this month.


Tech stocks are showing signs of vulnerability — or are they? As the old saying goes, buy the rumor, sell the news. Most media channels are reactive to the markets, so whatever caused tech stocks to fall has already occurred. And since none of today’s financial articles are providing a lasting reason for the brief and bearish move, there’s no reason to think the fall will continue. At least, not yet.

Recessionary whispers can still be heard, but only a handful of voices are shouting that doom and gloom are on the doorstep. If an economic downturn kicks in, all stocks will crumble, not just tech stocks. Until that day comes, it’s safe to say that the world will keep spinning and will need technology. 

Before shorting tech stocks, consider that the recent dip might be nothing more than a market correction caused by early investors taking profit from a very good year. It’s simply too early to say the tech bubble has burst, or is just leaking.

Here’s a breakdown of all Exness assets listed as tech stocks over the last 7 days. Notably, only one of them dropped by more than 10%.

  • Apple Inc. (AAPL) fell 2.43% from $179.36 (USD) to $175.01

  • Adobe Inc. (ADBE) fell 6.31% from $564.5 (USD) to $528.89

  • Automatic Data Processing, Inc. (ADP) fell 1.2% from $248.29 (USD) to $245.31

  • Advanced Micro Devices, Inc.  (AMD) fell 5.77% from $107.71 (USD) to $101.49

  • Activision Blizzard, Inc (ATVI) fell 0.49% from $92.27 (USD) to $91.82

  • Broadcom Inc. (AVGO) fell 2.29% from $871.64 (USD) to $851.68

  • BlackBerry Ltd (BB) fell 2.18% from $5.51 (USD) to $5.39

  • Baidu, Inc. (BIDU) fell 1.81% from $138.14 (USD) to $135.64

  • Electronic Arts Inc. (EA) fell 2.1% from $123.04 (USD) to $120.46

  • Fortinet, Inc. (FTNT) fell 6.22% from $65.07 (USD) to $61.02

  • Alphabet Inc. (GOOGL) fell 0.51% from $138.1 (USD) to $137.4

  • International Business Machines Corporation (IBM) fell 1.61% from $148.38 (USD) to $145.99

  • Intel Corporation (INTC) fell 2.52% from $38.86 (USD) to $37.88

  • Intuit Inc. (INTU) fell 2.04% from $549.3 (USD) to $538.08

  • Meta Platforms, Inc. (META) fell 3.66% from $311.72 (USD) to $300.31

  • Microsoft Corporation (MSFT) fell 2.5% from $338.7 (USD) to $330.22

  • NVIDIA Corporation (NVDA) fell 3.69% from $455.81 (USD) to $439

  • NetEase, Inc. (NTES) fell 0.26% from $101.76 (USD) to $101.5

  • Oracle Corporation (ORCL) fell 10.1% from $126.71 (USD) to $113.91

  • Taiwan Semiconductor Manufacturing Company  (TSM) fell 2.43% from $91.47 (USD) to $89.25

This is not investment advice. Past performance is not an indication of future results. Your capital is at risk, please trade responsibly.


Paul Reid
Paul Reid

Paul Reid is a financial journalist dedicated to uncovering hidden fundamental connections that can give traders an advantage. Focusing primarily on the stock market, Paul's instincts for identifying major company shifts is well established from following the financial markets for over a decade.

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