Why Are the Nasdaq's Top Growth Stocks Freaking Out Monday?
The stock market was deeply divided on Monday, with certain sectors doing far better than others. In a relatively unusual development, the Nasdaq Composite (NASDAQINDEX: ^IXIC) found itself on the short end of the stick, with the index falling almost half a percent in mid-afternoon trading even as other stock market benchmarks were up on the day.
Overarching the Nasdaq's underperformance on Monday was one factor. It has nothing to do with the fundamental performance of the businesses that has driven stock prices so much higher over the past 18 months. However, it's a key factor that many stock analysts use in determining valuation, and that explains the seemingly irrational aversion to high-growth stocks Monday. Below, we'll look more closely at what's happening.
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Source Fool.com
