Cracks Start to Appear in Nasdaq as Fed Meeting Looms
- Benchmark’s gains stem almost entirely from biggest companies
- BofA sees big tech hit next as central bank trims support
Photographer: Michael Nagle/Bloomberg
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On the surface, the Nasdaq Composite Index is having another banner year, up more than 21%. A deeper look shows cracks developing in the bull market that strategists say have been caused by the Federal Reserve’s plan to roll back monetary stimulus.
The index would have gains of only about 3% for 2021 if the 10 biggest companies, including Apple Inc., Microsoft Corp., Amazon.com Inc., Alphabet Inc. and Tesla Inc., were removed, according to Bloomberg calculations.