As recession fears rise and the fear index plummets toward levels last seen during the March 2020 pandemic panic, U.S. and global equities are taking a significant hit. Investors are beginning to feel the pressure as trade tensions escalate, with China and the European Union, key U.S. trading partners, doubling down on retaliatory tariffs. With no trade resolution in sight, the market continues to spiral lower.
Technology stocks have been hit especially hard as investors aggressively rotate out of risk assets. Ahead of Monday’s open, futures are signaling further losses. The Technology Sector SPDR ETF (NYSEARCA: XLK) is now down 21.5% year-to-date and 25% off its 52-week high as of Friday’s close. Meanwhile, as of Friday's close, the S&P 500 has fallen nearly 18% from its recent peak.
