Tech sell-off not a warning sign, say analysts after Nasdaq plunge

The technology sell-off was speculative excess coming off a hot market, rather than the beginning of a broader pullback. That’s the consensus view of investors and strategists after Thursday’s 5.2 per cent plunge in the Nasdaq 100 Index, the worst since March.

With the pandemic continuing to rage and a vaccine likely months away, bulls say there are plenty of good reasons why technology shares can be supported at current levels, despite lofty valuations.

Jobs and a holiday

“Yes, today was a bad day. Ripe for profit-taking, but even with the 3 per cent to 5 per cent drop, markets