Tech stocks finally tumble - a 'bumpy road' may be ahead

Gold last traded at $1,947 an ounce. Silver at $26.96 an ounce.

NEWS SUMMARY: Precious metal prices rebounded sharply Wednesday on bargain-hunting and a weaker dollar. U.S. stocks rose as tech shares clawed back some of the steep losses that pushed the Nasdaq Composite into correction territory.

 CNN/Techwire---"After weeks of cautioning that the spectacular run-up in stocks was likely to hit a snag, a dramatic sell-off shook Wall Street last week. The tech-heavy Nasdaq Composite plunged 5%, its worst day since June. The Dow dropped 2.8% and the S&P 500 fell 3.5%. Shares of Apple and Tesla, which had been on a tear since they announced stock splits that made shares more affordable, plummeted 8% and 9%, respectively. The action came after a summer of hand-wringing as stocks continued to reach new records, driven by massive central bank stimulus and unbridled enthusiasm for tech companies. As Apple's valuation topped $2 trillion, more than the entire Russell 2000, strategists had been telling clients that a correction was inevitable. Bespoke Investment Group noted that some of the worst-hit stocks had been 'the most aggressively valued and the biggest gainers' so far this year. And with tech looking like a very crowded trade, a rotation into other sectors is likely a good thing....Closely-watched measures of volatility indicate that the turbulence could continue. The CBOE Market Volatility Index, or VIX, which tracks volatility in the S&P 500, fell back slightly Friday but remains elevated, which is unusual when stocks are near all-time highs. Meanwhile, the CBOE Nasdaq Volatility Index - which follows the Nasdaq 100 - continued to climb. It's now at its highest level since April. 'There might be a bit of a bumpy road ahead.'"