WS #16648
Technology stocks are facing broad selling pressure, with the Nasdaq 100 attacking key support levels and Indian AI-linked stocks falling up to 5%. This selloff is driven by a macro shift: the Bank of England's expected rate hike and the Reserve Bank of Australia's looming fifth hike are raising the cost of capital for high-multiple growth assets. Analysts are increasingly warning that the AI investment boom may not survive higher interest rates, creating a headwind for the sector despite ongoing corporate AI adoption news like HSBC's new institute.
Tech Selloff & Rate Hike Pressure
Technology stocks are facing broad selling pressure, with the Nasdaq 100 attacking key support levels and Indian AI-linked stocks falling up to 5%. This selloff is driven by a macro shift: the Bank of England's expected rate hike and the Reserve Bank of Australia's looming fifth hike are raising the cost of capital for high-multiple growth assets. Analysts are increasingly warning that the AI investment boom may not survive higher interest rates, creating a headwind for the sector despite ongoing corporate AI adoption news like HSBC's new institute.