Transcript for Story Stock: Powerhouse QQQ Loses Over 3% in Two Days
I'm Michelle Franzen in New York has the financial markets close on this Thursday April 10 this -- story stock. Today a look at powershares QQQ. That's an exchange traded fund based on the NASDAQ-100. Index I'm joined now by Mike -- toll from Yahoo! finance Mike. Yesterday might have been the data get out of -- gives an idea about this. Funded this exchange fund and also what happened. Yeah I mean actually not suspect yesterday or even last Friday when. The stock market in the QQQ were making all time highs it doesn't much respect look like they were selling opportunities at least in the short term -- QQQ as you mentioned it represents the NASDAQ one -- which are basically some of the largest technology and biotechnology companies. In the US really it's been a senator or all of the the pain -- happen in the stock market over the last several weeks -- a lot of these. High growth companies high expected growth companies like Amazon. Like FaceBook. Like Twitter that have basically been really pummeled -- -- amazing year last year. Too many people it seems too many hedge funds were crowded into these names expecting big things. And once the market momentum faded. These were the ones that got hit the hardest so that's really all we can can say about it it's not really something dramatic about the economic environment -- -- -- -- an incremental reduction in risk appetites and people maybe think that the Federal Reserve is a bit closer to kind of making money a little bit tighter so that could lower risk appetites -- but that's really been the story here with today's sell off especially in the -- as they're called. Well let's take a look at the one day -- for QQQ -- an idea little bit about this overall slide that were seen on the graphic here. -- it seems to really -- just fed on itself over the last couple of days this that you really can't point to the economic data that might have spurted. A lot of folks -- -- -- talking about the fact that some of the hardest hit stocks are those that are that our own very heavily. By big hedge funds and some of the investments that a lot of hedge funds were not to be betting against such as emerging market stocks or. You know things overseas it seemed like they weren't as well positioned this they're strong right now so essentially you have people going from riskier -- very high expectation growth investments to more conservative. Perceived safer investments that's at least a short term I would I would point out -- They've even with. -- kind of a steep sell off that we've seen over the last day. -- and in fact of the last several weeks as we've had this volatile trading. The market is down about. Two to 3% off of an all time high asset just a week -- -- obviously it's felt worse than it was when you look at it from that perspective. Well certainly the NASDAQ has been on quite -- comeback let's take a look at its yearly -- also over the past three years. What the thinking here is the beginning of a serious down side is as the correction. It yeah it's it's never clear until you know it's if it's fully in the books essentially right now what we've seen. Would be consistent with the beginning of some kind of correction. Let let's let's be clear five years. Of gains in this index and in the overall market. We haven't had. Decline of at least 10% since 2000. And eleven. House in 2012 -- -- -- tough times but last year was almost a straight up here so obviously a lot of pent up selling one thing people do your point here is that in the week before. The US tax deadline April 15 obviously being the deadline. And you had a very strong stock one year the year before some of the leading stocks do get hit as people need to sell and pay their tax bills but that definitely does not. Account for all of all the selling we've seen this week as well keep -- -- on QQQ Mike Santelli of Yahoo! finance thanks for joining us. Okay thank you and you've been watching story stocks stay with abcnews.com for your latest headlines I'm Michelle Franzen in New York.
This transcript has been automatically generated and may not be 100% accurate.