Here’s what’s been happening on Wall Street overnight

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‘Tech trendiness’ has spiked to the highest level in 15 years

Anyone watching the stock market knows the tech sector is flying high in seemingly unstoppable fashion.

Contrarians have long called foul on this, blindly assuming that what goes up must surely come crashing down.

But that has been a long-running fool’s errand. If you had dumped your tech shares at the first sign of overvaluation, you would have missed out on months – perhaps years – of massive returns.

Fortunately for those waiting for the ax to fall on tech, Jim Paulsen, the chief investment strategist at The Leuthold Group, has a tool meant to assess when that may happen. And based on his most recent findings, the next year may not be so pretty for the red-hot sector – and, by extension, the market at large.

Tinder’s founders are suing Match Group and IAC, saying they have been ripped off

A group of early Tinder employees, including cofounders Sean Rad, Justin Mateen, and Jonathan Badeen, announced on Tuesday that they had filed a lawsuit against InterActiveCorp and Match Group, the owners of Tinder.

They’re alleging that IAC used a lowball valuation based on false information to reduce the value of stock options that early employees and founders held. The plaintiffs are seeking at least $US2 billion.

The Tinder team received written contracts in 2014 outlining stock options as well as four dates they could exercise them, according to Tuesday’s complaint.

But they allege that ahead of the first exercise date, in May 2017, IAC valued Tinder at $US3 billion and merged it with Match, which “stripped away” the team’s options in the fast-growing dating app, leaving them with less valuable Match options.

Elon Musk says he’s hired Goldman Sachs to help take Tesla private

Elon Musk hasn’t been one to hide his disdain for Tesla sceptics on Wall Street.

But when it came time to hire bankers to advise him on taking the company private, the Tesla CEO enlisted a bank home to one of the most bearish Tesla analysts on Wall Street. Goldman Sachs’ automotive analyst David Tamberrino has had a “sell” rating on the stock since February 2017.

Even Goldman’s most optimistic scenario for Tesla doesn’t even reach Musk’s tweeted goal of $US420.

Ethereum is down another 10%

Ethereum’s steep price fall continued on Tuesday as the entire cryptocurrency market continues to fall.

Ethereum is down just over 10% to $US253.35 at 4.22 p.m. BST (11.22 a.m. ET). The current sell-off began on Monday,when Ethereum dropped to an 11-month low. Bloomberg reported that the slump was sparked by startups that had raised funding in ethereum through so-called initial coin offerings (ICOs) now cashing their holdings into traditional fiat money they can spend on development.

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