• The Nasdaq 100 fell 2.1%, extending losses as tech megacaps face pressure from mixed earnings signals and shifting AI expectations.
  • Investors are reassessing growth prospects amid cautionary commentary on AI spending, corporate guidance, and interest-rate uncertainty.
  • The selloff underscores a risk-off tone in high-growth names, with major constituents like Nvidia and Apple leading declines.

The Nasdaq 100 slipped further Thursday, last down 2.1%, as a broad selloff in heavyweight technology stocks deepened. The index, heavily weighted toward AI and growth names, has been under pressure this week as investors weigh the sustainability of mega-cap valuations following a mixed batch of earnings reports. According to traders familiar with the matter, the decline reflects growing caution around AI-linked capex returns and corporate guidance, with several major firms signaling tighter margins ahead.

“The market is repricing expectations for AI-driven growth,” said a portfolio manager at a large asset manager, speaking on condition of anonymity. “Guidance from key players has been uneven, and that's causing a rotation out of tech.”

The slide was led by semiconductor and software giants, with Nvidia falling more than 3% and Apple dropping nearly 2%. Broader market sentiment was also dampened by renewed focus on interest-rate trajectories, as Federal Reserve officials reiterated a data-dependent stance. Without a clear catalyst for a rebound, traders expect continued volatility in the near term, especially as the earnings season enters its final stretch.

Efforts to stabilize the index have been hampered by a lack of clear direction from macroeconomic data. Meanwhile, the recent downturn has erased gains from earlier in the month, pushing the Nasdaq 100 into negative territory for the quarter.

Correction: An earlier version of this article misstated the index's performance for the week. It is down approximately 3% this week, not 2%.

Blackstone's Andrea Valeri noted in a separate conference Thursday that regulatory certainty is key for investors, but for tech-heavy indices, the immediate focus remains on earnings and AI monetization. “The story is about execution, not just promise,” he said.