Investors often turn to the Nasdaq Composite to gauge the performance of the technology sector. It has been on a bumpy ride over the last couple of years: It plunged 33% in 2022 but staged a strong rally this year, recording a gain of 31% so far. 

The 2023 rally stalled in August, and the index continued to slide in September. Seasonal weakness is playing a role, as some Wall Street bankers and fund managers take time off during those two months, leaving fewer buyers to pounce on dips in the market. Plus, there is lingering concern about how rising interest rates might affect the growth of high-flying technology companies. 

Long-term investors should look at this recent weakness in the Nasdaq Composite as a likely buying opportunity. Seasonality is a temporary headwind, and some experts predict the U.S. Federal Reserve might start cutting interest rates in the middle of 2024.

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Source Fool.com