The Nasdaq Composite Index dropped more than it has in nearly two years as investors reassessed the value of the market’s major tech firms that have performed exceptionally well in the past year.
The Index, which is down 1.2 percent in 2014 after two weeks of losses, fell 2.6 percent to 4,127.73, its largest one-day plunge since June 2012. Other indices also dropped Friday, with the S&P 500 down 1.25 percent the Dow Jones down nearly 1 percent.
The Nasdaq’s fall was led by some of the market’s biggest tech firms. Google, Yahoo and Facebook all dropped more than 4 percent after seeing significant gains over the past year. Facebook stock, which doubled in value last year, dropped nearly 10 percent over the last two days.
“Managers were positioned very heavily last year with the winners,” Rick Fier, director of equity trading at Conifer Securities LLC told Bloomberg. “They killed in 2013 and money started to pour in them. Today is kind of like the panic day that they couldn’t stand it any more and now they’re just puking these names.”