Nasdaq 100 nears correction as AI fears rattle investors

The Nasdaq 100 Index neared a correction on 28 July 2026, with losses approaching 10% from its recent peak as investors soured on artificial-intelligence stocks.

The tech-heavy benchmark tumbled amid mounting skepticism over the sustainability of AI-driven valuations, triggering a broad sell-off that hit major technology companies.

The Nasdaq Composite Index fell 0.51% on the day, deepening the Nasdaq 100’s underperformance against the S&P 500.

The retreat reflects a shift in sentiment, with easing geopolitical tensions dimming the appeal of safe-haven tech assets and prompting traders to reassess the sector’s outlook.

Worries over AI regulation and earnings growth had already stoked volatility in tech stocks earlier in July 2026, leading investors to rotate out of high-growth names.

The current pullback is seen as a natural consolidation after an AI-fueled rally earlier in 2026.

Analysts note that the Nasdaq’s relative weakness may be bottoming out, hinting at potential stabilization, though some technical indicators suggest a rebound could follow.

Traders now await key economic data and corporate earnings reports that could determine the next move, with further downside risks still in play.