Nasdaq 100 Slides as Meta Posts Strong Results and Drops 6%
The Nasdaq 100 sell-off is being driven by doubts over AI spending, as investors punish strong earnings that fail to justify stretched valuations.
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The Nasdaq 100 sell-off is being driven by doubts over AI spending, as investors punish strong earnings that fail to justify stretched valuations.
Fawad Razaqzada, StoneX Media Market Analyst, explains why strong tech earnings are being sold and what the Nasdaq 100's broken trend line means for the index.
Meta's shares fell around 6% despite very strong results, and Lam Research dropped after record quarterly revenue, as investors question AI capital spending. Lower U.S. Treasury yields are being read as a growth warning rather than support for technology valuations, while the Japanese yen has become the strongest major currency on haven flows. The Nasdaq 100 has also broken below a bullish trend line in place since March.
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