So much for the Santa Claus rally.

Technology stocks are on track to record their worst December performance since the dotcom bubble burst in 2002.

The Nasdaq Composite Index, which is laden with technology stocks, is down 9% so far in December and down 34% on the year, putting it deep in bear market territory.

A bear market is typically defined as a decline in equities of 20% or more.

The December weakness in tech stocks has accelerated following a new report that showed U.S. jobless claims remain near historically low levels, underscoring that the U.S. Federal Reserve is likely to keep raising interest rates.

Weak financial results from chipmaker Micron Technologies (MU) has also prompted a selloff in technology stocks.

However, the decline in stock prices during December is not confined to shares of technology companies. The benchmark S&P 500 index is down 6% on the month.

However, there is no question that technology stocks have been hardest hit in December and on the year.

Among the worst performers on the Nasdaq this month are Tesla (TSLA), whose shares have dropped more than 30% amid concerns about flagging demand for its electric vehicles.

Chipmakers Marvell Technology (MRVL) and Advanced Micro Devices (AMD) have each fallen about 20% in December.

This month’s selloff would have to get worse to surpass losses suffered in December 2002 when the Nasdaq declined 12% during the final month of the year.

In Canada, the benchmark Toronto Stock Exchange (TSX) is down 9% in 2022.