The Nasdaq Composite Index entered correction territory on Friday after a week filled with losses for high-flying tech stocks. Rising 10-Year Treasury yields and fears of inflation dragged down growth names as investors brace for uncertainty.
One of the worst performing names in the index was Tesla (TSLA), which is now over 3% off of its all time high. Similarly hard hit were shares of companies which have benefited significantly from the pandemic, such as Zoom, which is over 42% off of its highs.
While there have been no announcements to change the underlying growth stories of these companies, macroeconomic concerns came into focus on Thursday during Federal Reserve Chairman Jerome Powell’s testimony.
The central bank head said he expects “some upward pressure on prices” as the U.S. economy reopens, igniting fears that a period of severe inflation could return after over a decade of relatively stable price levels.