AI heat cooled, Nasdaq 100 market value evaporated 1 trillion dollars

On July 25th, US stocks, as investors were disappointed with the prospects of artificial intelligence, triggering the Nasdaq 100 stocks to lose $1 trillion in market value, the index fell by more than 3.6%, setting a record for the worst performance since October 2022. AI leaders such as Nvidia, Broadcom and Arm led the decline, with the "Big Seven" index falling 5.9%, falling below the 50-day moving average for the first time since May. Investors have raised questions about how long it will take for large investments in AI technology to pay off. Alec Young, chief investment strategist at Mapsignals, said: "There is too much money being spent now, and investors realize that returns will take some time to materialize. In the short term, the giant rally will be influenced by how much the market invests in it. "The wild swings in tech stocks suggest that investors appear to be listening to a growing chorus on Wall Street that the AI-fueled bubble of the past year is bound to burst. While Wednesday may not have been the start of that trend, the magnitude of the decline raised alarm bells.