MarketWatch First Take: Tech stocks plunge because investors are nervous — here are 3 reasons why

Investors appear to have woken up to some of the bad news that has been gushing out of tech companies in the past two months, and they are getting out while they can ahead of earnings season.

On Wednesday, tech stocks fell to lows they had not seen since 2011 in a huge market downdraft that sent the Dow Jones Industrial Average DJIA, -3.15%down more than 800 points. According to the WSJ Data Group, the S&P 500 index’s tech sector XLK, -4.85% suffered its biggest drop since August 2011.

There are some macro reasons for the decline, including bond yields and rising interest rates, but there are larger clouds hanging over tech specifically as earnings season approaches.

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