Big investors ditch tech ahead of expected September stocks slump

Big investors, fearful of September’s typical seasonal declines, exited profitable stock positions on Tuesday, according to investors and trading company research, a sign the selloff in tech may be driven by a broad aversion to risk.

The tech-heavy Nasdaq and broad S&P 500 stock index sold off sharply on Tuesday, driven by tech stocks that have rallied hard for much of the year. Nvidia sank 3.5%, the biggest drop in nearly four months.

“This week’s tech sell-off looks less like panic and more like a broad reshuffling of risk,” said Bruno Schneller,…