Tech stocks enter correction as AI worries and election risks weigh

· Economy · United States

Technology stocks led US equities lower on Monday, pushing the sector into correction, as worries about the artificial intelligence trade outweighed hopes of US-Iran diplomacy. A selloff in US chipmakers deepened, clouding the Asian market open, while a plunge in oil prices on peace hopes eased inflation concerns and helped Treasuries extend their biggest monthly advance in more than two years. Gold rebounded after oil fell. Analysis warned that AI risk needs to clear before any post-midterm rally in the S&P 500.

Why it matters：A tech-led correction shows how AI valuation worries and geopolitical hopes are pulling markets in opposite directions.

Key points

  • US tech stocks entered correction territory.
  • Chipmaker selloffs clouded the Asian market open.
  • Oil plunged on US-Iran diplomacy hopes, lifting Treasuries and gold.

Sources (original reporting)

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