China’s Internet stock sell-off may shake faith in FANGs

Growing concern impact: Traders work on the floor of the New York Stock Exchange. A recent slump in China’s own superstar technology stocks has increased worries about Wall Street dependence on a handful top-shelf growth companies. — AP

SAN FRANCISCO: A steep downturn in heavyweight Chinese Internet stocks and recent weakness in half of the so-called FANG group have some investors worried that a key component of Wall Street’s near-decade long rally may be low on fuel.

Outstanding gains in Facebook, Amazon, Netflix and Alphabet have underpinned much of the US stock market’s rally in recent years, along with the broader tech sector, but the group is widely viewed as overbought and valuations remain expensive.