WS #16993
The Nasdaq has entered correction territory following a massive sell-off in AI-related stocks, driven by concerns that the current level of capital expenditure is unsustainable without commensurate revenue growth. Apple's decision to cut internal AI budgets and Nvidia's summons to Congress over data security have accelerated the pivot away from growth optimism. The equity put/call ratio has topped 1.0, indicating extreme fear and heavy hedging by institutional investors.
AI Selloff and Tech Correction
The Nasdaq has entered correction territory following a massive sell-off in AI-related stocks, driven by concerns that the current level of capital expenditure is unsustainable without commensurate revenue growth. Apple's decision to cut internal AI budgets and Nvidia's summons to Congress over data security have accelerated the pivot away from growth optimism. The equity put/call ratio has topped 1.0, indicating extreme fear and heavy hedging by institutional investors.