Covid in China, war in Europe and changing perceptions about the invincibility of Big Tech companies are behind a plunge in the Nasdaq 100 Index that reached as much as 3.2% on Tuesday.
Only 10 of the index’s components are trading higher for the day. Tesla Inc. led declines, dropping by more than 10%. Meanwhile, unprofitable tech companies lost 5% at one point, with a gauge tracking such firms on pace to close at its lowest since mid-March.
“This is a market right now that just wants to go down,” Chuck Cumello, president and chief executive officer of Essex Financial Services, said by phone.
Stock volatility since the start of the year has been driven by many factors, not least of which is the Federal Reserve signaling that it will move aggressively to tamp down hot inflation. That has weighed down the Nasdaq 100, whose technology stocks are extra sensitive to interest-rate changes. The index is down 20% from its January high.