Nasdaq falls 10% from record high
2024.08.02 09:57
(Reuters) – The index fell 2.2% on Friday, putting it on track to confirm it is in a correction following concerns about pricey Big Tech valuations and a cooling economy.
Hit by softer-than-expected job reports and disappointing forecasts from Amazon (NASDAQ:) and Intel (NASDAQ:), the Nadsaq’s latest decline leaves it down 10.2% from its record high close of 18,647.45 points on July 10.
The was also on track to confirm a correction territory from its all-time closing high of 20,675.38 points.
An index or stock is widely considered to be in a correction, signaling investor pessimism, when it closes 10% or more below its previous record closing high.
The Nasdaq’s recent selloff comes on the back of investors selling Wall Street’s heavyweight stocks after lackluster results from Tesla (NASDAQ:) and Alphabet (NASDAQ:) compounded investor worries about stretched valuations and concerns that a rally fueled by optimism about the AI technology may have become overextended.
Nvidia (NASDAQ:), Microsoft (NASDAQ:) and other Big Tech stocks have been key drivers of Wall Street’s rise to record highs in 2024, lifted by expectations of interest-rate cuts this year by the U.S. Federal Reserve and the euphoria around AI.
