Broadcom outlook and rate concerns send Nasdaq-100 down 4.1%
The Nasdaq-100 tumbled 4.1%, putting it on track for its biggest drop since April 2025, mostly because tech giants struggled after Broadcom's earnings outlook disappointed and talk of more interest rate hikes spooked investors.
The S&P 500 also slid by 2.2%.
While tech stocks took a big hit, defensive sectors like healthcare and consumer staples actually held up pretty well.
UBS AI basket drops 6.5%
AI-focused shares weren't spared, with UBS's AI winners basket dropping 6.5%, the biggest dip since October.
Super Micro Computer and ARM Holdings were among the hardest hit, as many investors cashed out profits after a long rally.
Jeff Buchbinder, chief equity strategist at LPL Financial, called this pullback a healthy pause, reminding everyone that while things look rough now, the long-term story for AI is still strong, even as money moves to safer bets during uncertain times.