A Model X is on display at a Tesla showroom on February 13, 2021 in Beijing, China.
VCG | Visual China Group | Getty Images
What’s behind the drop in tech stocks? A model Wall Street uses to value stocks is flashing caution.
Tech stocks are in a correction. The Nasdaq 100, the largest 100 non-financial stocks in the Nasdaq, is 10% off the historic high it hit just three weeks ago, but many big names are down close to 20%.
Tech in correction
(% from 52-week high)
- Xilinx 23%
- Paypal 22%
- AMD 21%
- NVIDIA 19%
- Apple 17%
What’s going on? The market is worried interest rates will be shooting up and the Federal Reserve may not be able to control it.
Why would a rise in…