THE Nasdaq Composite Index has lost nearly $1 trillion this week after the pace of a spike in US bond yields took investors by surprise, fueling expectations of a volatile 2022.
Expensive software makers, biotechs and newly minted stocks have borne the brunt of the damage, while Cathie Wood’s ARK Innovation exchange-traded fund, the poster-child of hyper-growth names, has tumbled 9%.
Declines may not be over yet: Nasdaq 100 futures point to a further 0.3% drop on Thursday after the worst two-day rout since March.
U.S. 10-year Treasury yields were hovering near to 1.75%, the highest in about 10 months.
Volumes on the main indexes remained thin and well below levels of mid-December when the Federal Reserve’s hawkish tilt turned markets volatile.
Higher rates reduce the present value of future earnings, weighing especially on shares of highly valued, fast-growing companies. Zscaler, Datadog, Peloton Interactive and Crowdstrike Holdings have lost between
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