Tech selloff deepens as AI doubts fuel flight to Treasurys — SkimNews
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- S&P 500 and Nasdaq ended sharply lower on renewed doubts about AI's near-term profitability, marking a significant tech sector selloff
- Meta and major chip stocks declined as investors questioned the AI trade, pulling down equity valuations across the tech landscape
- Treasurys saw increased demand as investors rotated out of tech, driving yields lower in a classic flight-to-safety move
- Nasdaq suffered its worst weekly performance since July, fueled by weakening confidence in AI-driven growth narratives
- Investors rotated capital into healthcare and bonds, signaling a shift in market leadership amid rising skepticism about AI monetization
Why it matters: The tech selloff reshuffles sector leadership, with real money moving from AI-exposed equities to defensive assets. This rotation reflects a material shift in expectations—AI’s promised returns are not materializing fast enough, triggering a repricing of risk that benefits bondholders and healthcare while pressuring high-multiple tech valuations.
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