Bulls Beware. The $1.7 Trillion Tech Rout May Not Be Over
- Stocks with high valuations lead selloff; Nasdaq futures fall
- Investors see more declines as Fed ready to tighten policy
Photographer: Tiffany Hagler-Geard/Bloomberg
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A whopping $1.7 trillion wipe-out from the Nasdaq Composite Index is starting to look like it has farther to run.
The two-week rout followed the re-appointment of Jerome Powell as chair of the Federal Reserve and his comments on quickening the rollback of pandemic stimulus. Those hawkish signals are leaving investors bracing for rising interest rates that will hurt some of the most highly valued stocks, such as Zoom Video Communications Inc., Adobe Inc. and Tesla Inc. Borrowing costs are likely to go higher even as the new omicron variant of the coronavirus raises the risk of an economic slowdown.