The Nasdaq composite index fell 2.1 percent on Thursday, a drop that left the tech-heavy benchmark down 9.7 percent from the record it reached in February.
A drop of 10 percent from a high is known as a correction, a Wall Street term that indicates something more serious than a garden-variety downturn.
Stocks that soared during the pandemic last year were slammed on Thursday. Shopify, which helps retailers develop e-commerce operations and saw its shares rise nearly 200 percent last year, was down nearly 6 percent. The tech security firm CrowdStrike, up more than 300 percent last year, was down more than 8 percent on Thursday.
Some of the largest stocks were also lower, weighing on both the Nasdaq and the broader S&P 500 index.
Apple dropped more than 1.5 percent and is down 16 percent since Jan. 25. Tesla dropped nearly 5 percent, bringing its losses from its January high to 29 percent.
The 10 percent threshold for a correction is arbitrary, but it is often an indication that investors have turned more pessimistic about the markets.
The decline in the stock markets was set off as investors, concerned that an economic recovery would mean the Federal Reserve would pull back on its easy-money policies, poured money into government bonds, which are considered more secure.
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March 05, 2021 at 02:35AM
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Tech stocks are close to correction territory. Here’s what that means. - The New York Times
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