To say that March was a tough month would be an understatement. Many once high flying technology stocks have continued to be under pressure. This index was down 10.76 percent in the first quarter. The same is true for the Russell 2000 Index, typically used to measure small-cap stocks. This index was down 4.88 percent in March and down 6 percent for the first quarter.
Many investors continue to focus on technology stocks.
Many technology companies have seen quick erosion in their current business trends. This has led to a significant number of negative earnings revisions by Wall Street. Due to this erosion, companies and analyst are having a difficult time projecting what will happen in future quarters. The problems with technology stocks are being compounded by the Federal Reserve. Many investors expected the Fed to act aggressively to lower interest rates by 75 basis point during their March FOMC meeting.