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In Tech Trading, Net Leaders Lead the Way Down

eBay, Yahoo!, Amazon.com and America Online are all lower this afternoon.

SAN FRANCISCO -- A weakening bond market and a lack of positive news have helped batter Internet stocks this afternoon.

TheStreet.com Internet Sector

index was down 15.8, or 3%, at 554.2 in recent trading. Leading the decline once again were the Internet bellwethers, whose valuations are of particular concern when interest rates rise.

Derek Brown, an Internet analyst with

Volpe Brown Whelan

, said losses continue to stem from a combination of interest-rate fears, valuation concerns and anticipation of a seasonal slowdown during the summer, along with general market conditions.

"A lot of the pullback has been due to overall market concerns, and as long as market concerns persist, I don't know why Internet stocks would be immune to those concerns," he said.

Brown said he expects the volatility and market swings to continue into July before

Yahoo!

(YHOO)

kicks off earnings season for the Net on July 7.

"If we do see strong numbers, particularly from the category leaders, the market should settle a bit," said Brown.

Today those "category leaders" are leading the way down. The aforementioned Yahoo! was down 6 7/8, or 5%, at 137 7/8.

eBay

(EBAY) - Get eBay Inc. Report

was trading down 11 5/8, or 6%, at 171 1/16 after servers for the online auctioneer

TheStreet Recommends

collapsed.

Investors continued to bail out of

America Online

(AOL)

amid concerns over a slowing subscriber base overseas due to the prevalence of free Internet access. Shares of AOL were down 5, or 5%, at 100 1/2.

Finally,

Amazon.com

(AMZN) - Get Amazon.com, Inc. Report

has never really recovered from the valuation concerns that resurfaced following the

Barron's

hatchet job a couple of weeks ago. The stock was down 6 11/16, or 6%, at 109 1/4.

Internet Bellwethers?

The bigger they are, the harder they will fall.

Great time to get in.

Will bounce back even stronger.

No longer playing Net sector.