Tech Sector Slumps as AI Stocks Lead July Selloff
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- AI and memory stocks led a broader selloff across the technology sector in July, dragging the space lower
- Big tech lost its valuation premium over the rest of the market — the gap that had separated mega-cap tech from other stocks vanished entirely
Why it matters: The compression of big tech's premium against the broader market means investors can no longer rely on mega-cap tech names for portfolio ballast, as the AI selloff has spread beyond a handful of mega-caps into the broader technology sector.
