On the whole, the vast bulk of tech stocks are down in the premarket on Tuesday, January 25, prior to the market opening. Notably, several of the most active companies, such as Tesla (NASDAQ: TSLA), Apple (NASDAQ: AAPL), and NVIDIA (NASDAQ: NVDA), have all seen the highest trading volume premarket, have all witnessed a decline in value premarket. Bill.com (NYSE: BILL), which saw the most significant change, is down 3.84% at the time of publication, followed by Chargepoint (NYSE: CHPT), which is down 3.32%, NVIDIA, which is third with 2.88%, and coronavirus vaccine-related company Moderna (NASDAQ: MRNA), which is fourth with a decrease of 2.54%, according to Market Watch premarket data. Regarding the decline in value premarket, former hedge fund manager, Jim Cramer, said that he would like to see a sell-off in the morning and a recovery as the day progresses rather than things looking better in the morning and then worse later in the session.
Markets are flirting with a correction
Recently, we reported that the market is flirting with a correction based on a number of mitigating circumstances, such as the Federal Reserve hinting at tighter monetary policy returning in December, which later in January, they informed they would be returning quicker and more widely than anticipated. Rising geopolitical tensions are also affecting markets as the likelihood of a potential invasion of Ukraine by Russian forces is causing a great deal of uncertainty. Additionally, there are hints of a slowdown in the US economy as a result of the rapid spread of the Omicron variant.
Nasdaq sentiment lower than March 2020 crash
Finbold also highlighted that the current sentiment on the Nasdaq equity market is weaker than that of the crash that occurred in March 2020, when the coronavirus pandemic started to have an impact on global markets. Founder and Managing Partner of Fairlead Strategies, LLC, Katie Stockton, said: On the current market volatility, she added: Investors appear to be watching the performance of the market closer than ever this week to see how things play out, as the Nasdaq is still down 14.5% from its all-time high and the Nasdaq 100 is roughly down 13.5% from its all-time high respectively. Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
