Unplugged.
Tech stocks absorbed a long-awaited decline in April, damaging mutual funds and exchange-traded funds that had enjoyed their run-up. Some investors hope it’s just a needed pause after a strong run for stocks of software, social-media and other tech companies that sent growth-stock funds soaring. As April ended, the tech-focused Nasdaq Composite Index had logged its weakest month since 2008: down 13%.
The damage wasn’t limited to tech. The average U.S.-stock fund fell 8.6% in the month, according to Refinitiv Lipper data. For 2022 so far, through April, the funds were down 14.1%. The average large-cap growth fund, meanwhile, powered by corporate-earnings potential, was down 12.4% for the month, and 22.1% so far this year, according to Lipper.
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