After one of the bloodiest trading sessions in years, tech stocks -- including Microsoft, Yahoo, Google, Apple and Oracle -- recovered slightly, but not enough to recoup Monday's losses.
The tech-heavy Nasdaq index inched up 3 percent in Tuesday's session, but it has a ways to go before it makes up for Monday's selloff, when it fell 9 percent to 2004 levels.
Apple, one of the hardest hit tech stocks on Monday, climbed up roughly 5 percent on Tuesday, but it was still nearly 14 percent off of Friday's close.
Little has happened to alleviate investors' fundamental concerns. There still isn't a bailout plan in place and the economy didn't dramatically improve overnight. And even if the financial crisis doesn't affect the tech sector directly, it's likely to have a trickle-down effect on the industry all the same.
"Financial issues are going to affect both business spending and consumer spending, and particularly ... spending by the financial services industry," said Microsoft CEO Steve Ballmer, at a news conference in Norway on Tuesday.
In the meantime, many market watchers argue that Monday's selloff represents a buying opportunity -- particularly in the internet sector.
Citi analyst Mark Mahaney noted that of seven large-cap internet stocks -- Akamai,
Amazon, eBay, Expedia, Google, Priceline and Yahoo -- all but Amazon hit 52-week lows on Monday.
"We respect market fears ... but to put matters in perspective ... rampant credit market concerns are not directly relevant to these
[internet companies]," wrote Mahaney.
The stocks aren't budging much, though. Google shares dropped $50 on
Monday and were only up $27 on Tuesday; Microsoft shares fell 7 percent on Monday, and climbed less than 3 percent on Tuesday.
Photo: Kay Nietfeld/Corbis
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