The Nasdaq plunged 5.5% on Thursday as the AI complex suffered a brutal sell-off, dragging other sectors down with it. The bloodbath followed a brief post-election calm, raising fears of a systemic market spiral. Critics of passive investing warn that index fund outflows could amplify the downturn, but historical trends suggest the market was already cooling before the election.
Economic fundamentals remain solid, with strong jobless claims and earnings growth outside tech. Meanwhile, the Bank of England raised rates despite falling oil prices, citing persistent inflation risks. Treasury yields fell and gold edged up, but credit markets show selective stress rather than broad panic.
Source: Financial Times Companies · Summarized by HeadlinesBriefing