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The Nasdaq Composite fell nearly 390 points in a continued selloff of technology stocks, driven by profit-taking after a strong rally and growing concerns over slowing AI investment. Major tech firms like NVIDIA and AMD saw significant declines, with investors reassessing valuations amid mixed earnings reports and regulatory scrutiny. The broader S&P 500 also dropped over 1.5%, reflecting widespread market anxiety.
This decline impacts global markets, particularly affecting growth-oriented investors who had heavily allocated to tech stocks. The selloff raises questions about the sustainability of the AI-driven tech boom, with traders now closely watching the Federal Reserve's policy stance and upcoming economic data. Volatility is expected to persist as markets balance optimism about AI's long-term potential with near-term profit-taking.
For Gulf investors, the tech sector's performance remains a key barometer for global risk appetite. The Saudi equity market may see indirect pressure if the tech selloff spills into broader US indices. Traders should monitor the Nasdaq's support levels at 14,500 and 14,200, as well as the Fed's next policy meeting for clues on rate cuts.
