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Market Update

The Week in Stocks and Funds

Goodbye, tech rally. We hardly knew ye.

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After technology stocks posted robust gains for much of April and early May, investors might have thought happy days were here again. Alas, a continued tech rally was not to be. Earnings jitters took a toll on the sector this week, pushing the Nasdaq Composite index down 3.8% to 2,107.43. The other major indexes fared better. The Dow Jones Industrial Average declined 1.1% to 10,821.31, while the S&P 500 index dropped 1.5% to 1,245.67.

Fund Category Returns
Surprise, surprise. The worst-performing category for the week through Thursday was specialty technology. All in all, the group has dropped about 2% through Thursday, as not-so-optimistic outlooks from the likes of Cisco Systems (CSCO) and National Semiconductor (NSM) roiled tech stocks. Internet-related shares fell the hardest, as they have so often over the past year, with Internet UltraSector (INPIX) (yep, that's a real fund name), Potomac Internet Plus (PNETX), and Jacob Internet (JAMFX) taking big tumbles.

Scott Cooley does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

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