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Nasdaq Plunge Is Victory Lap for a Stable of Stock Naysayers

  • Sky-high valuations, volatility cited as reasons for pullback
  • Tech-heavy gauge fell most since March as high-flyers dropped
Bloomberg business news
Thursday's plunge in equities is more likely to be profit-taking rather than the start of a downtrend, according to Societe Generale.(Source: Bloomberg)
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Whatever else it signifies, and it may not be much, considering what happened the last time stocks did this, Thursday’s plunge in equities was vindication for bearish strategists whose voices had been getting louder.

Skepticism looked smart with big technology companies posting the biggest drop since March. Warnings that valuations were out of control and investors would pay for their euphoria have been swirling around for weeks amid a stretch in which the S&P 500 went 30 sessions without a 1% decline. On Thursday, it fell 3.5%, while the Nasdaq 100 lost 5.2%.