Tech selloff wipes nearly $1tn off US markets

· Economy · United States

A bruising selloff in technology shares drove US markets down by nearly $1tn on Friday, with the Nasdaq 100 falling 3.5% and the tech-heavy Nasdaq Composite posting its worst day since June. Disappointing earnings from Amazon and Intel deepened the slide. Intel had its worst day since the 1970s, wiping about $12bn off the US government's stake. Reddit plunged 29% after weak fourth-quarter guidance and plans to require users to log in. Investors questioned whether the billions poured into AI can generate returns quickly enough, and Wall Street meted out some of its harshest punishments ever for companies missing expectations. Defensive stocks rallied as money fled the AI trade.

Why it matters：The scale of the drop tests whether the AI-driven bull market can hold, and any sustained retreat would hit pensions, savings and corporate investment worldwide.

Key points

  • Nasdaq 100 fell 3.5% and briefly crossed a threshold
  • Intel had its worst session since the 1970s, cutting the government stake by about $12bn
  • Reddit sank 29% after weak guidance and a planned login requirement

Sources (original reporting)

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