Cloud Stocks Plunge
Cloud stocks are being hammered as investors rotate their money out of tech stocks into financials, commodities and industrials.
The Dow Jones Industrial is trading just below a record, but a widely followed index of cloud-computing companies has slid to its lowest level in six months.
The WisdomTree Cloud Computing Fund, which consists of 56 mostly cloud-related stocks, dropped 2.4 percent, its seventh drop in the past eight days.
The tech sell-off began in February and has picked up steam in the last couple of weeks.
The central theme to the market rotation has been concern about rising interest rates, which have traditionally hurt high-growth companies.
For the year, the cloud index has dropped 15 percent, compared with the Dow’s 14 percent gain and the four percent increase in the Nasdaq Composite.