Meta, Nvidia pummeled in Nasdaq 100's worst week in 8 months

Investors betting that the worst is over for battered technology stocks got a painful reminder this week that there’s more gloom in store.

The Nasdaq 100 Stock Index sank 5.8 per cent in its worst week since January, after an inflation report on Tuesday suggested prices could stay higher for longer than anticipated. The loss was the index’s third weekly drop of 4 per cent or more since the summer rebound ended in mid-August. 

The Nasdaq 100 remains above this year’s low reached on June 16, but the gap is narrowing and many of the tech sector’s biggest names are already plumbing new depths. Facebook-parent Meta Platforms Inc. hit the lowest since early 2019 after tumbling 14 per cent this week. Meanwhile, chipmaker Nvidia Corp. is at the lowest in a year-and-a-half following an 8 per cent drop. 

“Big tech faces more pain until inflation is solved,” said Matt Maley, chief market strategist at Miller Tabak + Co. “Markets still need to adjust to the fact that we’re no longer going to have massive levels of liquidity and artificially low interest rates.”