Nasdaq 100 Notches Worst Session Since Late 2022, Falls Below Key 50-Day Moving Average: Is The AI Tech Bubble Bursting?
Portfolio Pulse from Piero Cingari
The Nasdaq 100 experienced its worst session since late 2022, falling below its 50-day moving average. Major tech stocks, including Alphabet, Tesla, Nvidia, Broadcom, and Arm Holdings, saw significant declines. The Invesco QQQ Trust and Roundhill Magnificent Seven ETF also suffered notable drops.

July 24, 2024 | 8:37 pm
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NEGATIVE IMPACT
Arm Holdings plc shares sank 8.2%, part of a broader decline in chip stocks.
The significant drop in Arm Holdings' stock is part of a broader decline in chip stocks, likely leading to short-term declines.
CONFIDENCE 100
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Broadcom Inc. shares dropped 7.6%, reflecting broader weakness in the tech sector.
Broadcom's significant drop is indicative of broader tech sector weakness, likely leading to short-term declines.
CONFIDENCE 100
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Alphabet Inc. shares fell 4.9% due to higher-than-expected AI spending and disappointing YouTube ad revenue.
Higher AI spending and disappointing ad revenue are negative indicators for Alphabet's profitability, likely leading to short-term stock declines.
CONFIDENCE 100
IMPORTANCE 85
RELEVANCE 100
NEGATIVE IMPACT
The Roundhill Magnificent Seven ETF plunged 5.8%, marking its worst daily performance since inception.
The ETF's significant drop reflects the broader selloff in major tech stocks, likely leading to short-term declines.
CONFIDENCE 100
IMPORTANCE 85
RELEVANCE 100
NEGATIVE IMPACT
Nvidia Corp. shares fell 6.2%, contributing to a significant loss in market value among tech giants.
The decline in Nvidia's stock is part of a broader tech selloff, likely leading to short-term declines.
CONFIDENCE 100
IMPORTANCE 85
RELEVANCE 100
NEGATIVE IMPACT
The Invesco QQQ Trust dropped 3.6%, marking its worst day since October 2022 and falling below its 50-day moving average.
The significant drop in the Nasdaq 100, which QQQ tracks, indicates a bearish sentiment in the tech sector, likely leading to short-term declines.
CONFIDENCE 100
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Tesla Inc. shares tumbled 12% following a 7% drop in auto revenue, a profit miss, and delays in the Robotaxi project.
The significant drop in auto revenue, profit miss, and project delays are strong negative factors, likely leading to short-term stock declines.
CONFIDENCE 100
IMPORTANCE 90
RELEVANCE 100