by Wolf Richter
Wolf Street
This crash beneath the surface showed something had broken, that the magic had died, that hype and hoopla were suddenly unable to carry the day.
Stocks have been in a downward spiral for a while. The S&P 500 Index has dropped 23% from its high on January 3rd, the Nasdaq has dropped 33% from its high on November 22.
But here is the thing: many, and I mean a whole bunch of the biggest high-flyers peaked in February 2021, so about nine months before the Nasdaq peaked, and they have since then collapsed by 70%, 80%, and even over 90%. And it happened very fast, stock by stock. These stocks started getting totally crushed nine months before the Nasdaq headed south.
They include many big-name stocks that have crashed 70%, 80%, or 90% since February 2021.