ME News reports that on November 1 (UTC+8), The Kobeissi Letter posted on X that the Nasdaq 100 Index lost approximately $4 trillion in market capitalization over 25 days; AI stocks declined more than 13% in October, while the S&P 500 excluding AI stocks rose 8% during the same period and hit a new all-time high on Friday. The S&P 500 is currently just 3.5% away from its all-time high, yet about 58% of its components are down at least 20% from their respective peaks, 75% of technology stocks have entered bear market territory, and 91% of stocks in the information technology sector are down at least 10% from their highs.
The Kobeissi Letter argues that current selling pressure is concentrated primarily on technology-related stocks, and most investors, due to their heavy exposure to tech stocks, are experiencing market pressure far greater than what major indices suggest. It also notes that record-breaking capital expenditures by companies for the AI technology revolution, along with normal market corrections, may lay the groundwork for the next rally, and expects significant market volatility to persist in November. (Source: ODAILY)
75% of Nasdaq technology stocks enter bear market amid market volatility
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Summary
Market volatility impacted the Nasdaq 100 as 75% of tech stocks entered a bear market. The index lost $4 trillion over 25 days, with AI stocks declining more than 13% in October. Meanwhile, the S&P 500 rose 8% and neared a record high. The S&P 500 is within 3.5% of its peak, yet 58% of its components are down at least 20%. Volatility remains concentrated in the tech sector, with 91% of information technology stocks down at least 10% from their highs.
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