After powering this year’s market rally, tech stocks are now the biggest drag. US markets slipped for the fourth day as the Nasdaq slid 0.7% and the S&P 500 lost 0.2%. Heavyweights like Nvidia, Apple, Amazon, and Alphabet all fell 1% or more, with Palantir notching a 10% drop earlier in the week. Is this the end of the AI-fueled tech boom, or a healthy pause? Some analysts blame profit-taking and classic summer seasonality, while others cite fragility in underlying tech demand.
Investors are eyeing the Fed’s rate path, retail sector warnings, and economic crosswinds as forces driving portfolio “rotations” toward defensive names. Notably, eight of eleven S&P sectors outperformed tech this week. For now, the great AI-winner selloff may be more about rebalancing than panic—unless Fed signals shift.
