Nasdaq Megacaps Go Careening Off Course
This year’s hottest Nasdaq stocks, companies from Facebook Inc. and Apple Inc. to Netflix Inc. and Nvidia Corp., buckled Friday.
This spurred losses that sent the Nasdaq 100 to its biggest drop relative to the Dow Jones Industrial Average since 2008. Accounts of what spurred it ranged from bearish tweets by a short seller to a cautious note from Goldman Sachs Group Inc.
In its most benign interpretation, the selloff was merely a rotation. It was counterbalanced by rallies in industries such as banks, energy producers and retailers. But the reversal was enough to spur soul searching among bulls who have watched the market value of Apple, Alphabet Inc., Microsoft Corp., Amazon.com Inc. and Facebook increase by $500 billion since December.
Even with the decline, the tech index remains up 18 percent in 2017. This is more than twice the gain of the S&P 500.