Not so long ago, shares of some major technology companies were subject to serious pressure from investors. As a result, a massive drop in the US stock indices was recorded. Tech sell-off was the main reason for the overall decline. Large indices were decreasing for four consecutive sessions. Shares of technology and Internet companies were getting cheaper, as investors grew increasingly cautious after a long period of growth in this sector.
For example, Facebook lost 18 percent in just a few days. The value of Apple's securities fell after the analysts of Goldman Sachs lowered their assessments of the demand for iPhone for March and June quarters. Negative dynamics was recorded in seven out of eleven industry groups of Standard & Poor's 500. The most significant decline is observed in the financial, consumer, and technological sectors. In general, March was a difficult month for the US stock market. Since early March, Dow Jones has decreased by 4.7 percent, and the S&P - by 3.7 percent. However, most analysts claim that the current situation in the market is just a temporary phenomenon.
Investors believe that the recovery will continue, taking into account the high rate of economic growth around the world. "We're still pretty bullish on the economic front and earnings are solid enough to justify equity prices," said James Athey, Aberdeen Standard Investments.
