Wall Street faced a harsh reality check as technology stocks plunged, raising doubts about the sustainability of the artificial-intelligence-driven bull market. The selloff was particularly severe for the Nasdaq 100, which dropped 4%, nearing a technical correction. Intel Corp. suffered the worst blow, tumbling 31%, its steepest decline in over four decades, after its outlook fell short of expectations. Amazon.com Inc. also declined 2% due to increased capital spending.
Blackstone Group Inc. added to the uncertainty by suggesting that Anthropic PBC might not receive an investment-grade rating immediately following its initial public offering, according to the Financial Times. The broader market felt the impact, with the S&P 500 sinking about 2%. The selloff underscored growing concerns that the tech sector's rapid growth may have been overestimated.