Nasdaq Slides as Tech Sell-off Counters Economic Growth

Apple led the downward trend with a 6.1% drop, while heavyweights including Nvidia, Microsoft, and Alphabet also retreated. These losses wiped out early session gains for the sector, revealing a fragile sentiment among investors who are questioning the long-term profitability of aggressive AI capital expenditures, despite optimistic performance reports from chipmakers Micron and Qualcomm.

The broader economic landscape provided little comfort. Inflation climbed above 4.0% for the first time in three years, fueled by spiking energy costs, a development that has forced traders to price in the possibility of a Federal Reserve rate hike. While GDP figures surpassed initial projections and jobless claims unexpectedly dipped, the positive data failed to reassure equity markets, leaving the Dow slightly higher and the S&P 500 flat by the closing bell.