Tech stocks are down more than 30% this year after their first week in the black, but the stock market’s troubles are far from over.
According to research firm Gartner, the tech industry’s shares are down nearly 25% over the past year, and are at their lowest point since 2013.
The tech sector is experiencing a major headwinds in 2017, with the Federal Reserve set to begin raising interest rates for the first time since 2015.
According a recent report from Gartners, the Federal Open Market Committee (FOMC) may begin raising rates from the current range of 1.0% to 1.25% in late October, before the end of the year.
Gartners also says the tech economy is in trouble as a result of the recent Brexit vote in the United Kingdom, and is forecasting the U.S. economy will shrink by 0.4% over 2018.
That would be the biggest one-year contraction in more than a decade.
The tech bubble is in free fall.
It is a phenomenon where tech stocks have become increasingly volatile, driven in large part by a belief that the technology industry is on a path to becoming more disruptive than previously anticipated.
Despite the positive trends, the current market is far from healthy.
A look at the most common indicators of the tech bubble:A year ago, the S&P 500 index of U.K. shares was up almost 12% in 2017.
In 2018, it is down just 4%.
The tech industry is in the midst of an intense and volatile year, as investors are watching the Fed raise rates in October and see that the economy is poised to expand in the coming years.
It has also seen major tech companies go public, which has increased the pressure on the market.
The Gartens report comes as a number of investors have been holding back their investment in the tech-heavy tech stocks in order to focus on other industries.
Some have been buying companies that are still in the initial stages of growth, but are in a period of transition, or in a transition period.
The tech sector has also been hit hard by Brexit.
“It’s a time for investors to look at other industries,” said Alex Rupkey, head of equity research at Rupkeys.
“If you’re not investing in tech right now, you’ll be a victim of a correction.”
The recent volatility in the stock markets and the market’s price action in recent months has put the tech markets at a crossroads.
The technology sector has seen a lot of volatility this year, including a huge selloff in early January.
The market rallied to new highs, but it has since fallen back to levels not seen since 2013, according to Garters.