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Bear Warning Seen With Nasdaq 100 Velocity Stalling at 2000 Peak

  • Rising yields, cheaper stocks pose threats to tech sector
  • Nasdaq unable to maintain its gains relative to S&P 500
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Tech Stocks Set for `Bumpy Ride,' Saxo Bank Says

A rebound in the Nasdaq 100 that recouped as much as half of its $1.5 trillion losses from its February high hasn’t been enough to deter skeptics. In fact, analysts are warning that the index may yet face more battering.

Their concern emanates from the bond market, where rising yields have put pressure on richly valued stocks such as the tech companies that populate the Nasdaq gauge. An increase of 50 basis point in 10-year Treasury yields could lead to a bear market for the index, or a decline of as much as 20%, according to a study from Ned Davis Research.