Nasdaq 100 gives back post-election gains as Apple, FANGs take a hit

Pedestrians walk past the Nasdaq MarketSite in New York.
Victor J. Blue | Bloomberg | Getty Images
Pedestrians walk past the Nasdaq MarketSite in New York.

The Nasdaq 100 has seen better days.

The index, which is composed of the 100 largest nonfinancial companies in the broader Nasdaq composite, fell more than 1.5 percent Thursday, erasing its post-U.S. election gains, as shares of Apple and the so-called FANG stocks (Facebook, Amazon, Netflix and Google parent Alphabet) all fell.

The Nasdaq 100's decline began Wednesday, when it dropped 1.3 percent. Entering Wednesday's session, the index had gained 2.4 percent. As of 3 p.m. ET Thursday, the Nasdaq 100 was down about half a percent since Nov. 8.

Nasdaq 100 since Nov. 8Source: FactSet

Kim Forrest, senior equity analyst at Fort Pitt Capital, said the index was being pressured by rising interest rates in the U.S. On Thursday, U.S. Treasury yields soared to levels not seen since 2015 as a meeting in which the Federal Reserve is likely to tighten monetary policy approached.

"Everything points to a rates increase and the bond market is foretelling that," she said. "As the yields increase, that drives the [earnings] multiple lower in those stocks."