WS #16628
The Nasdaq Composite fell 3% on Friday, marking a significant reversal in the AI-driven rally. The selloff was intensified by Intel's continued struggles, which dragged down the broader semiconductor sector. Investors are rotating out of high-multiple tech names into non-AI S&P 500 stocks, which are posting their best monthly performance since 2022. This rotation suggests a growing skepticism about the sustainability of AI spending and a shift towards value and defensive sectors.
Tech Selloff and AI Rotation
The Nasdaq Composite fell 3% on Friday, marking a significant reversal in the AI-driven rally. The selloff was intensified by Intel's continued struggles, which dragged down the broader semiconductor sector. Investors are rotating out of high-multiple tech names into non-AI S&P 500 stocks, which are posting their best monthly performance since 2022. This rotation suggests a growing skepticism about the sustainability of AI spending and a shift towards value and defensive sectors.