AI/Tech Selloff Wipes $1.1T from Nasdaq
AI capex spending concerns triggered a tech-led selloff with the Nasdaq 100 down 2.9%, semiconductors down 6.7%, and the leveraged semis ETF $SOXL crashing 20.5% — just one week after a record $3.8B inflow into it.
What we know
A broad de-risking event hit markets today, concentrated in megacap tech and semiconductors. The Nasdaq 100 lost 2.9%, wiping over $1.1 trillion in market value per an account on X, while the S&P 500 fell 1.2% per another account on X. The semiconductor index ($SOX) fell 6.7% and $SOXL, the 3x leveraged ETF, crashed 20.5% per another account on X, catastrophically bad timing given a record $3.8B weekly inflow the prior week. Meta fell 7.1% and Tesla 3.2%. Another account on X frames this as 'position off' rather than pure 'risk off' as markets question the sustainability of AI capex. BTC fell 4.1% to $81.2K, ETH 4.5% to $2,379, SOL 4.4% to $103 — trading like the Nasdaq, not as a hedge per another account on X. The key level to watch for S&P regime change is 7,583 (the 20-week average) per another account on X. Goldman's short positions are at the 99th percentile of the past five years per another account on X.
By the Global Eye 24 desk, with AI assistance. Updated as the story develops. Spot an error? Write to corrections@globaleye24.com.