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Selloff in Tech Stocks Gathers Pace as Bond Yields Climb

  • Software still not a buy before earnings, Morgan Stanley says
  • Nasdaq 100 has fallen 6% from November’s record close
Updated on

The stampede out of expensive technology stocks may be far from over as bond yields -- the biggest threat for high-flying growth shares -- mark new post-pandemic highs.

The $1.5 trillion rout in the Nasdaq Composite Index in the first week of 2022 has sent some of the most pricey stocks down 10% or more, but the decline in benchmark indexes from last year’s records has yet to reach double digits. ZScaler Inc., Crowdstrike Holdings Inc. and Datadog Inc., which trade at more than 200 times forward earnings, lost roughly 30% from their record highs.