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Nasdaq’s Pullback Gives Investors Deja Vu for 2018

  • Monetary policy, high valuations also were in play in 2018
  • Fed meeting next week seen as negative catalyst for tech
Updated on

The Nasdaq 100 Index’s rebound to start the week has done little to calm nerves after a selloff that has investors fretting that the market is headed for a replay of December 2018, the last time a hawkish Federal Reserve sent stocks tumbling.

Market watchers point to similarities with the selloff three years ago: The prospect of higher interest rates, sky-high valuations in technology stocks and mounting concern about an economic slowdown. The tech-heavy Nasdaq 100 lost 12% in just two weeks back then and ended the year in negative territory for the first time since 2009 as rate hikes led to a selloff in expensive stocks.