Nasdaq 100 Is in Correction Territory With AI Darlings Sinking
- Amazon leads stocks lower as traders turn skittish on AI bets
- Prospect of rate cuts should boost demand for riskier stocks
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The violent rotation from Big Tech plunged the Nasdaq 100 Index into correction territory, wiping out more than $2 trillion in value in just over three weeks, as traders unwound bets that had been minting money for over a year.
The index closed down 2.4% on Friday, taking its loss since a July 10 record to more than 10%, passing the threshold that meets the definition of correction. The index closed at its lowest since mid-May on Friday, but remains up nearly 10% for the year.