Nasdaq Sell-Off: 2 Artificial Intelligence (AI) Stocks Down 20% and 49% to Buy Hand Over Fist on the Dip
Technology stocks have hit a rough patch of late as investors have been looking to reduce their exposure to riskier assets in the wake of the tariff-induced trade war, leading to an increase in demand for safer investments.Moreover, investors are worried that a potential increase in manufacturing costs on account of the tariffs imposed by the Trump administration could hurt the prospects of technology companies. So, it is easy to see why investors have become risk-averse of late and are booking profits in tech stocks that delivered impressive gains in 2023 and 2024 thanks to a big catalyst in the form of artificial intelligence (AI).All this explains why the Nasdaq Composite index has entered correction territory. As of Monday's market close, the index was down 13% from its most recent high achieved on Dec. 16 last year. A drop of 10% to 20% in a major index qualifies as a stock market correction, and it remains to be seen how long the ongoing one may last.Continue reading
Technology stocks have hit a rough patch of late as investors have been looking to reduce their exposure to riskier assets in the wake of the tariff-induced trade war, leading to an increase in demand for safer investments.
Moreover, investors are worried that a potential increase in manufacturing costs on account of the tariffs imposed by the Trump administration could hurt the prospects of technology companies. So, it is easy to see why investors have become risk-averse of late and are booking profits in tech stocks that delivered impressive gains in 2023 and 2024 thanks to a big catalyst in the form of artificial intelligence (AI).
All this explains why the Nasdaq Composite index has entered correction territory. As of Monday's market close, the index was down 13% from its most recent high achieved on Dec. 16 last year. A drop of 10% to 20% in a major index qualifies as a stock market correction, and it remains to be seen how long the ongoing one may last.
