WS #16994
US equities suffered their worst day since April 2025, with the Nasdaq falling 5.52% and the S&P 500 dropping 4.36%. The selloff was led by semiconductor stocks, with AMD down 17% and NVDA down 9%, reflecting growing investor anxiety that AI data center capital expenditure is slowing. This repricing marks a significant shift in the AI narrative, forcing a reassessment of growth multiples in the tech sector. Cloudflare (NET) delivered its fastest growth in nearly four years, raising its full-year outlook, providing a bright spot in the tech sector. Other companies like Xponential Fitness and N-able also provided positive guidance, suggesting that not all tech and service sectors are facing headwinds. This divergence highlights that the selloff is concentrated in high-multiple AI plays rather than the entire technology sector.
Tech Selloff and AI Spending Fears
US equities suffered their worst day since April 2025, with the Nasdaq falling 5.52% and the S&P 500 dropping 4.36%. The selloff was led by semiconductor stocks, with AMD down 17% and NVDA down 9%, reflecting growing investor anxiety that AI data center capital expenditure is slowing. This repricing marks a significant shift in the AI narrative, forcing a reassessment of growth multiples in the tech sector.
Cloudflare (NET) delivered its fastest growth in nearly four years, raising its full-year outlook, providing a bright spot in the tech sector. Other companies like Xponential Fitness and N-able also provided positive guidance, suggesting that not all tech and service sectors are facing headwinds. This divergence highlights that the selloff is concentrated in high-multiple AI plays rather than the entire technology sector.