The Tech Tide Turns

Technology rallied 5.24% yesterday for its best day since April 9, 2025, when the sector surged 14.15% after the Tariff Tantrum. Tech had fallen 5.41% over the prior four trading days, and yesterday’s rebound recovered more than 90% of that decline. By comparison, the sector tumbled 14.37% from April 2 through April 8, 2025, before recovering roughly 84% of those losses the following day.

Yesterday marked the 33rd time since 1990 that Tech rallied at least 5% after declining at least 5% over the prior four trading days. These moves have overwhelmingly occurred during periods of market stress. Outside of yesterday and the Tariff Tantrum, the most recent examples came during the COVID Crash and the severe correction of December 2018. Earlier occurrences were around the August 2015 Flash Crash, the Financial Crisis, and the Dot-Com Bust. In other words, a 5% rebound may look encouraging, but moves of this magnitude have historically been a product of elevated volatility.

Before yesterday’s rebound, Tech had fallen 13.78% from its June 2nd high and closed Wednesday at its lowest level since Cinco de Mayo. Wednesday was the sector’s fifth straight decline, matching losing streaks that ended on June 26, 2026, and July 10, 2023, as the longest since a seven-day streak ended on September 6, 2022.

The two five-day losing streaks over the past month followed Tech’s second-longest winning streak since 1990, a 14-day run that ended on April 20. The only longer streak was a 15-day advance ending on February 22, 2017. Less than two months later, Tech completed a 10-day losing streak. A similar reversal occurred in 2012, when winning streaks of ten and nine days were followed within several months by the sector’s record 12-day losing streak.

Long winning streaks don’t necessarily cause the losing streaks that follow, but the recent sequence shows how abruptly Tech’s tide has turned. A sector that could barely register a down day in April has now experienced two of its longest losing streaks in years, and one of its sharpest one-day rebounds.