LAST summer as the Faang block was tightening its strangle-hold on equities, a theory was hatched that the only thing that could ever halt the rally in megacap tech would be evidence the economy is healing.
Three weeks into the worst selloff of the year, it’s a view looking more and more prescient. The Nasdaq 100, which surged 48% in 2020 on bets people would be stuck indoors forever, is now tumbling toward a correction. Thursday’s leg came as Federal Reserve chair Jerome Powell did nothing more than recommit himself to an economic recovery whose pace is picking up.