Looks like game over for the giddy run of tech stocks

Published Sun, Sep 13, 2020 · 09:50 PM

US stocks fell last week and the Nasdaq Composite entered correction territory as the giddy run of technology stocks came to a screeching halt.

A new generation of day traders, in concert with institutional investors such as SoftBank Group, drove the tech rally that roughly doubled the market capitalisation of "mega cap" stocks like Apple and Microsoft since the March lows, adding trillions of dollars in market value.

The percentage of options held in small lots grew exponentially over the last six months, as young investors placed bullish bets using the famously treacherous call options.

"Stocks only go up" was the catch cry of the day traders, who gathered on online forums such as t…