Why this rate-driven sell-off is hitting tech stocks the hardest


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…


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