Tech Sell-Off Drags Markets Lower Amid AI Valuation Concerns
U.S. equities tumbled sharply on Friday as investors fled high-growth tech stocks, with the Nasdaq Composite leading losses at a 2% decline. The S&P 500 dropped 1.1% while the Dow Jones Industrial Average shed 400 points in a broad risk-off move.
Semiconductor giants Nvidia, AMD and Qualcomm led the retreat as market participants questioned stretched valuations in AI-related equities. The selloff persisted despite solid earnings from some tech firms, suggesting growing skepticism about sustainability in the sector.
Economic uncertainty compounded the pressure. October layoffs hit their highest level in over two decades, while the ongoing government shutdown has frozen critical economic data releases. Tesla faced additional scrutiny ahead of a pivotal shareholder vote on Elon Musk's compensation package.
