Tech stocks are set to nudge closer toward correction territory on Tuesday, paced to the downside by a selloff in the chip sector that is likely to cloud a crucial week on Wall Street.
The overnight slump in chips stocks, tied to reports of a key development in chipmaking technology in China as well as the increasing levels of circular financing in the broader tech sector, has the Nasdaq Composite flirting with a 10% pullback from its early June peak.
The benchmark, which is up more than 7.2% for the year, has slumped nearly 8% since June 2, and is on pace for a 10% pullback with Tuesday’s premarket slide. It’s also likely to record its second consecutive month of negative returns.