It was a rough week for tech and bio-tech stocks. And in Marketplace’s Weekly Wrap segment, Leigh Gallagher, editor of Fortune Magazine, and Sudeep Reddy, from the Wall Street Journal, recap the week’s financial news.
This week’s market slump was driven in large part by big-name tech companies, and on Thursday, the Nasdaq Composite slumped 3.1 percent, its biggest decline since November 2011.
“We’re seeing this increasing skittishness, and whether it’s related to Candy Crush’s IPO or tech stocks this week or JP Morgan today, if you pull really far back, last year the market was pretty boffo. It was up 30 percent,” says Gallagher. “And the whole world knows that we’re not going to do that again this year.”
Was last year’s market performance a little too bananas?
“Bananas, boffo, I’ll give you another b-word: bubble,” says Reddy. “We’ve spent so much time thinking about bubbles… that we’ve actually lost sight of some of the more fundamental issues like corporate earnings and economic expectations. And we’d have to see some pretty remarkable economic growth and profit growth to support where the stock market has been the past couple of months.”
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