Although the stock market has been able to hold on to steady gains so far this year, FAANG components Apple (AAPL) and Amzaon.com (AMZN) have failed to perform consistent with the market trend. These stocks have underperformed the S&P 500 year-to-date owing in part to President Biden’s executive order that cracks down on anti-competitive practices by tech giants. Read on.FAANG stocks represent some of the most well-known technology companies in the United States. These companies have risen to unparalleled market-cap heights on their excellent business strategies and market domination. They represent approximately 19% of the S&P 500 index and have a substantial influence over the movement of the benchmark index.
However, FAANG stocks Apple Inc. (NASDAQ:AAPL) and Amazon.com Inc. (NASDAQ:AMZN) have underperformed the S&P 500 since early January.
Growing investor skepticism over the Fed's policy meeting led the stock market to a turbulent start this week, further exacerbating the tech sector's pressure and causing these companies to retreat even more. Also, the Biden administration’s executive order aimed at increasing the scrutiny of big tech firms for their anti-competitive practices could put further pressure on the FAANG stocks.