Oil Surge Past $100 and AI Spending Fears Trigger Broad Market Selloff
NDX sits 25% above its 52-week low of $22,673.875.
Summary
The Nasdaq 100 dropped 1.85% as oil surged past $100 a barrel and AI spending fears intensified. Tesla plunged 13.82% after its profit tumbled, while Alphabet fell 6.56% on a higher-than-expected capex outlook, fanning concerns about the sustainability of AI investments. Rising oil prices, driven by Middle East tensions, threaten to reaccelerate inflation and have boosted bets on a Fed rate hike as soon as next week, pressuring tech valuations. This follows a volatile period for the Nasdaq 100, which has seen 1%+ daily swings in 20 of the last 26 sessions. The selloff is broad but concentrated in mega-cap tech, with the Magnificent Seven basket down 4.54%, extending its worst weekly drop since early June. Energy shares bucked the trend, rising 1.03%, while AI infrastructure plays like Micron and SK Hynix gained on Alphabet's plans to expand third-party capacity. The market is now pricing in higher rates, which could further challenge growth stocks. Watch for Intel's earnings after the close and any escalation in the Middle East that could push oil even higher.
At the time of this announcement, NDX was trading at $28,411.57 on NASDAQ in the Technology sector. The 52-week trading range was $22,673.88 to $30,762.20. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Moneycontrol.