Is this the market correction we’ve been waiting for? The Nasdaq tumbled on Tuesday, tumbling nearly 4% early in trading before cutting its losses to a roughly 1.9% drop at 10:30 am EST, with tech investors worrying about their own. earnings (200%, 300% or more) last year could be jeopardized by a recent hike in government bond rates.
Tech stocks are plunging on no particular news, but much concern over what that might mean, with Appian (NASDAQ: APPN), for example, down 2.2%; CrowdStrike Holdings (NASDAQ: CRWD) down 5.8%; and Zscaler (NASDAQ: ZS) with an 8% discount.
Each of these names had nearly quadrupled in share prices in the past year of the pandemic, giving investors a lot to lose if the market turns south.
What could be causing this to happen? Analysts warn of a “Tesla-Bitcoin-ARK investment … risk cluster” in which all types of companies and mutual funds are taking on all types of the same types of risk at the same time, so that if one thing goes wrong (Bitcoin drops 10% one day, for example), the whole tangle is in danger of falling apart. Bond rates are of particular concern, …
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