Nasdaq-100 Enters Third Correction of 2024 Amid AI Concerns
The tech-heavy index has fallen 10% from recent highs, marking its third correction this year as investor anxiety over AI valuations grows.
The Nasdaq-100 has slid into correction territory for the third time in 2024, deepening a technology-sector selloff that began in October and renewing concerns about whether the prolonged rally in artificial intelligence stocks has pushed valuations beyond sustainable levels.
A correction is defined as a decline of at least 10% from a recent peak. The index's repeated dips into that threshold this year underscore persistent volatility in a sector that had been among the market's strongest performers, driven largely by enthusiasm around AI-related companies and chipmakers.
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Investors are now weighing whether the current downturn carries enough momentum to tip into bear market territory — generally defined as a drop of 20% or more — a prospect that would mark a significant reversal for an index that surged to record highs earlier in the year on AI optimism.
The October tech selloff has been characterized by broad pressure across large-cap technology names, reflecting a reassessment of growth expectations at a time when interest rates remain elevated and questions mount about the pace at which AI investments will translate into corporate earnings.
Market watchers will be monitoring whether buyers return at current levels or whether sustained selling pressure accelerates the decline further. Continue reading at MarketWatch.com
