AI Dominance Squeezes 80% of S&P 500 Stocks in September
NDX sits 35% above its 52-week low of $22,841.417.
Summary
The Nasdaq-100 gained 3% in September while the broader market deteriorated sharply—nearly 80% of S&P 500 stocks fell, the average stock dropped 5%, and only two sectors rose. The Russell 2000 lost 5% as capital concentrated in AI and data-center supply-chain names. Credit stress is building: CCC-rated corporate bond spreads jumped over 100 basis points in September, surpassing April tariff-selloff levels. Analyst earnings forecasts for next year have flatlined after rising since February, signaling the profit boom may be over. This follows a volatile summer for the index, including a correction in late July and a strong August rebound. The divergence between AI winners and the rest of the market is now extreme, with higher rates, fuel costs, and AI competition squeezing non-tech companies. Watch for further spread widening and earnings revision trends as bond yields remain elevated.
At the time of this announcement, NDX was trading at $30,807.93 on NASDAQ in the Technology sector. The 52-week trading range was $22,841.42 to $31,017.52. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.