Big Tech’s Stock Market Leadership Is Threatened By Rising Rates
- Sudden spike in yields has investors fleeing pricey tech
- Big question is what bond action could trigger more selling
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Megacap technology stocks rallied through a global pandemic, fears of a bubble and rising regulatory scrutiny. But the bond market could be the hurdle that finally trips them up.
Apple Inc., Microsoft Corp., Amazon.com Inc., Alphabet Inc. and Facebook Inc., the five largest U.S. companies, have delivered reliable outsized gains to shareholders for years. This week was different, as a selloff erased more than $300 billion from their combined market value and sent the Nasdaq 100 to its worst week since late February.