(Bloomberg), — Near-record tech stock prices have fallen by around 50%, echoing the dotcom crash.

Jason Goepfert (chief research officer, Sundial Capital Research), stated that roughly four out of ten companies included in the Index saw their market value drop by half from 52-week highs. However, the vast majority are stuck in bear markets. 

“Whatever the fundamental and macro considerations, there is no doubt that investors have been selling first and trying to figure out the rest later,” Goepfert said in a note.

One way to look at the tech disaster is this: Since the burst in the dot-come boom, so many companies have been wiped out. The index however was close to its peak. 

“Valuations are at historical highs, companies are raising billions based on fairy dust, and the Fed is signaling a tightening cycle,” Goepfert said. “All of these are scaring investors that we’re on the cusp of a repeat of 1999-2000.”

Tech stocks have been under pressure since the start of the year amid a bond-market selloff that’s driven yields on 10-year Treasuries to 1.72%. The carnage worsened after minutes of the Federal Reserve’s last policy meeting — released on Wednesday — pointed to earlier and faster rate hikes, suggesting to some that the central bank became more hawkish quicker than many had expected. Traders quickly unloaded tech shares because their high valuations became difficult to justify under a rising rate environment.

This could cause problems for active market managers who have large exposures to the stock markets, as many stocks are below their most recent highs. 

Continue reading: Goldman Calls Out Active Managers for Missed Opportunities

The Nasdaq composite index has seen its largest weekly decline since November. It rose Thursday in New York’s afternoon trading session. The index’s worst day since February 2012 was marked by a 3.3% decline Wednesday.

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