Tech Troubles: Another Pounding For Key Sector Amid Yield, Washington Worries

Tech Troubles: Another Pounding For Key Sector Amid Yield, Washington Worries

Investors probably look forward to Friday more than usual this week. That's because Friday is the start of a new month, ending what's been a disappointing and ugly September that got uglier Tuesday as rising Treasury yields and a volatile situation in Washington took their collective tolls. September is now on pace to be the worst month for the S&P 500 Index (SPX) since last October. The index is down more than 3% month-to-date. It's also a reminder of how rising Treasury yields and worries about rising rates can punish the "growth" sectors like Tech and Communication Services. Investors may remember similar times earlier this year and back in the fall of 2018 when rate worries led to tough times for Tech. These worries also helped send volatility straight back up toward where it was a little over a week ago during the last major selloff. The Cboe Volatility Index (VIX) topped 23 today, up from around 18 at the end of last week. Typically, it's pivoted near 20 the last few months, and anything that approaches 25 could signal growing worries about more turbulence ahead. At 20 you start to take notice of VIX, and a VIX of 30