I would like to hear the opinions of experienced traders. Thanks.
The Nasdaq Composite has a higher concentration of tech stocks, and when tech companies experience a downturn, it tends to impact the index more heavily. Recently, tech has been more volatile, which could explain why Nasdaq dropped more than the S&P 500 and Dow Jones.
I think it’s mainly due to interest rate hikes. Tech stocks are usually more sensitive to changes in interest rates because their valuations are based on future growth, and higher rates can hurt those projections.
The Nasdaq is more heavily weighted toward growth stocks, while the Dow Jones and S&P 500 are more balanced with value stocks. Growth stocks tend to take bigger hits during market corrections, which might explain why Nasdaq has suffered more.