Nasdaq's 5-day drop worst since April 2018
Wall Street took a big hit this week, with the Nasdaq dropping nearly 4%—the sharpest five-day fall since April 2018.
The main culprit? A massive sell-off in AI-focused tech stocks, which erased about $911 billion in market value and left investors feeling uneasy about how high these companies have climbed.
NVIDIA alone lost $430 billion in market capitalization
Eight major AI players—including NVIDIA, Meta, Palantir, and Oracle—lost a combined $911 billion last week.
NVIDIA alone saw its stock drop nearly 4% on November 4, wiping out more than $430 billion in market capitalization over the week.
This shows how quickly things can change when investors start to worry.
Reasons behind the fall
After months of huge gains, many investors decided to cash out over fears that tech stocks were getting too expensive.
Even strong earnings couldn't stop Palantir's stock from falling 8%.
NVIDIA is also dealing with US-China chip restrictions and new competition from Chinese AI firms.
Meanwhile, other giants like Microsoft and Amazon dropped as people questioned if pouring billions into AI is really sustainable right now.
What lies ahead?
With all this uncertainty, people are rethinking whether betting big on flashy tech is worth the risk.
For now, expect more caution—and some serious ups and downs—as everyone waits to see where the tech sector goes next.