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Tech Traders Unwind Hedges and Get Back to Pummeling Risky Names

  • Nasdaq 100 tumbles 2.6% as Fed’s signaled rate hikes sink in
  • Comes one day before ‘triple witching’ options expirations

The hazard of getting wedded to knee-jerk reactions following Federal Reserve news was on display again Thursday, as a two-week bout of turbulence in speculative companies resumed on the eve of a giant options expiration.

Pain was worst in indexes like the Nasdaq 100, which reprised its recent habit of making every drop a big one. While the selling may have been a delayed reaction to Jerome Powell’s tough talk on rate policy and came one day before the typical volatility of a “triple witching” Friday, it also reflected several helpings of bad news landing on its marquee members.