U.S. equities tumbled by the most in almost three months as the rotation away from high-flying tech stocks gained steam, with investors questioning the sustainability of lofty valuations. The S&P 500 Index pulled back from a record high and was set for its biggest drop since June amid declines in Apple, Microsoft, Amazon and Facebook. The Nasdaq 100 fell more than 5% at one point, its biggest intraday decline since March. European stocks erased gains to trade more than 1% lower. The euro slumped for a third day on signals the European Central Bank is concerned about its strength. Treasury yields dipped and the dollar rose. Global equities are pulling back hard from record highs as investors question the justification for lofty valuations as the pandemic rages on. While data Thursday showed applications for jobless claims fell last week, U.S. investors may be demanding evidence of a fuller economic recovery after a 60% run-up in the S&P 500 since its March lows. “Frankly, the deeper the pullback in tech, the healthier is is for the overall market,” said Alec Young, chief investment officer at Tactical Alpha LLC. “The market was overbought, there were too many people chasing the tech names. It’s all healthy. The valuations have been stretched.” The Cboe Volatility Index -- a measure of expected price swings for the S&P 500 Index known as Wall Street’s “fear gauge” -- rose to the highest level since July. Bitcoin fell as much as 7.6%. Meanwhile, U.S. health officials have told states to prepare for a Covid-19 vaccine to be ready by Nov. 1, an aggressive goal that suggests availability just before the presidential election. Infectious disease expert Anthony Fauci warned of a potential surge in American cases from the coming long holiday weekend. Elsewhere, oil slumped below $41 a barrel. Major equity gauges in Asia were mixed. Subscribe to our YouTube channel: https://bit.ly/2TwO8Gm QUICKTAKE ON SOCIAL: Follow QuickTake on Twitter: twitter.com/quicktake Like QuickTake on Facebook: facebook.com/quicktake Follow QuickTake on Instagram: instagram.com/quicktake Subscribe to our newsletter: https://bit.ly/2FJ0oQZ Email us at [email protected] QuickTake by Bloomberg is a global news network delivering up-to-the-minute analysis on the biggest news, trends and ideas for a new generation of leaders.