Tech stocks drag down Nasdaq for the week; Strategy and Arm Holdings among losers

Seeking Alpha ·

The Nasdaq ( COMP:IND ) fell around 4.50%, snapping its two-week winning streak as the technology sector extended its selloff amid growing concerns over elevated AI-related valuations and reports that OpenAI is considering delaying its IPO until 2027.

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Nasdaq fell about 4.50%, ending a 2-week rally. Selling in the technology sector spread amid concerns over lofty valuations of AI-related names and reports that OpenAI may delay its IPO until 2027. AI- and semiconductor-linked names such as Arm Holdings and Strategy posted large declines, and index volatility widened. In the short term, risk-off sentiment is likely to shift capital toward value stocks and safe assets, and uncertainty around IPO timing is expected to weigh on the broader equity market.

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