The rout is on in stock markets.
The Nasdaq Composite broke the 200-day moving average at the open and it’s been non-stop selling from there. The index has now cut through the July low and is trading at the worst levels since April.
Nvidia is a major drag on the index and is now down 8.75% while Micron is getting destroyed, down 16.4%. I wrote about the reasons for the selloff in MU earlier.
Meanwhile, shares of Apple are being seen as something of a safe haven as they’ve avoided the AI boom. They’re down just 0.5% after hitting a 52-week high earlier. Berkshire Hathaway is also up 0.6% as its huge cash pile is seen as a possibility to deploy in a downturn.
Yesterday we saw large gains in Microsoft and Amazon but those have faded to a large extent, with losses of 3.4% and 4.4%, respectively.
Generally, this selloff is heavily concentrated in AI names and particularly those affected by the build-out. There is a rotation into names seen as less affected, with Walmart and Costco shares both strongly higher today.
