BTS
12-15

The Nasdaq plunged 2% in a tech sell-off, triggered by disappointing AI-related guidance from industry giants, exposing vulnerabilities in high AI expectations; this event is framed as a healthy correction rather than a bubble burst, despite persistent market nerves。。。

Long-term investors may view the decline as an opportunity to add high-quality, oversold tech or undervalued sectors, while short-term profit-takers trim expensive AI names and risk-averse investors move to the sidelines until monetization clarity improves

The long-term potential of the AI sector remains optimistic, driven by transformative gains across industries, yet caution is necessary due to near-term volatility stemming from regulatory risks, competitive pressures, and the challenge of meeting market expectations

The prospects of AI hold great promise, but investors must stay cautious, as realizing these benefits will require navigating inevitable market fluctuations

Tag :@Huat99  @Snowwhite  

Nasdaq Plunges 2%: Overreaction or Bubble Bursting? Add or Trim Position?

@Tiger_comments：
$NASDAQ(.IXIC)$ fell sharply by 2% yesterday, with tech stocks taking the hardest hit and AI-related names facing a bloodbath. $Alphabet(GOOG)$ , $Microsoft(MSFT)$ , and $Meta Platforms, Inc.(META)$ all dropped over 1%, while storage and semiconductor sectors saw almost across-the-board declines. $Oracle(ORCL)$, after plunging 10% the previous day, fell another 4% as the market worries that its data center projects for OpenAI may be delayed until 2028. $Broadcom(AVGO)$ earnings beat expectations, but executive remarks on weak profit margins sent the stock down 11%. With short-term profitability unclear, high-valuation tech stocks are seeing capital flight, directly dragging down the Nasdaq. Market anxiety is further amplified by the Fed’s mixed signals and Trump’s AI executive order The Chicago Fed president remains optimistic, while the Kansas Fed president opposes rate cuts, raising concerns that easing in 2026 may slow or even pause. Adding to the uncertainty, Trump signed an AI executive order standardizing federal regulation and limiting state-level rules, which could increase compliance costs and slow innovation. Investor doubts over the AI sector are therefore intensifying. Which side are you? Optimists argue this is an “AI anxiety” overreaction, and the pullback in high-valuation stocks could be a buying opportunity. Cautious investors fear a bubble burst, noting Oracle has already dropped over 40% from its highs, which could trigger a chain reaction. Short-term Treasury yields are falling, but long-term yields are rising, forming a “bear steepening” curve—a warning for investors to be wary of valuation risks. Given this environment, what would you do? Add or trim your positions, or hold cash and wait? Questions: Do you think this Nasdaq decline is an “AI anxiety overreaction” or the start of a bubble bursting? If you hold tech stocks, would you add, reduce, or stay on the sidelines? Are you optimistic or cautious about the long-term potential of the AI sector? Leave your comments to win tiger coins~ Click to view our TA lessons & earn coins, $5 stock vouchers! TA Education 1｜Understand Market Signals! How to Spot $MSFT & $TSLA's Uptrend? TA Education 2｜How to Spot 2 Common Bearish Patterns? TA Education 3｜2 Common Bearish Patterns - How to Spot Misleading Signals? TA Education 4｜How to apply MA indicators in live-trading? TA Education 5｜6 Common MA Patterns — Which One Do You Find Most Useful?
Nasdaq Plunges 2%: Overreaction or Bubble Bursting? Add or Trim Position?

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  • EmilyMark
    ·12-16
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    Stay cautious but ready to buy dips! [看涨]
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    • BTS: 
      [smile]
      12-17
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