Tech stocks were routed last week after a blue wave in the midterm elections. There was plenty already bubbling beneath the surface, and a new government that could be hostile to tech growth set off alarm bells. Since peaking about a month ago, the S&P 500 is down almost 4%, while the tech-heavy Nasdaq Composite (NASDAQINDEX: ^IXIC) is down nearly 9%.

The tech sell-off could be a brief dip that rebounds to new highs, or it could turn into a bear market. In other words, no one knows what will happen next. While that’s always the case, the underlying political and economic factors affecting the market are intensifying, increasing the likelihood of volatility and a market correction.

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