TREE NEWS reports: The Nasdaq 100 fell 3.5% on Friday, its biggest drop since early June, as a deepening selloff in technology stocks hit investors who had bet on the “All-in AI” trade. The three-week slump, driven by growing anxiety over whether technology can generate enough profit to justify the debt-fueled investment boom, sent investors rushing back to defensive sectors that had been long neglected.
Nasdaq 100 Plunges 3.5% as AI Selloff Ends Three-Week Decline
AI take
The significance here is less the size of the drop than what it says about the AI trade's funding story: anxiety is now centered on whether profits can service debt-fueled capex, which shifts the risk from sentiment to balance sheets. The rotation into long-neglected defensive sectors suggests positioning, not just headlines, is being reset. Whether that defensiveness persists, and whether the profit-versus-debt question keeps driving flows, is the open question worth watching.
Generated by AI for reference only.
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