LOS ANGELES (AP) — Technology and internet stocks have led the way for much of Wall Street’s bull market run, propelling the stocks of big names like Apple, Amazon and Google’s parent company sharply higher along the way.
Now those high-flying stocks are at the forefront of a wave of selling as investors fret about the possible impact of a recent surge in interest rates.
Those jitters gave the tech-heavy Nasdaq composite index its biggest loss in more than two years Wednesday.
Technology and internet-based companies are known for their high profit margins, and many have reported explosive growth in recent years, with corresponding gains in their stock prices. That’s made them particularly vulnerable to rise in interest rates, because it makes the stocks’ already high valuations look even more stretched.