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Megacap stocks sell off at fastest rate since dotcom bust of 2000

The tech-heavy Nasdaq 100 dropped 0.3 percent Thursday, extending its decline this year to 27 percent.

By Denitsa Tsekova and Thyagaraju AdinarayanBloomberg

Published On 12 May 2022

Tech and megacap growth stocks are selling off at the fastest pace since the dotcom bust of 2000 when compared with cheaper companies such as banks and energy firms that pay higher dividends.

Investors are cooling on stocks whose earnings prospects are far off in the future — a future made all the more uncertain after prices rose more than expected in April, keeping inflation near a 40-year high. Add a more aggressive policy response by the Federal Reserve and a possible recession and all the ingredients for a deeper tech bust are lining up.

“This CPI print was perhaps the most eagerly anticipated in recent history, particularly for growth investors with high duration names forming the bulk of their portfolios,” said Lewis Grant, a

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