Dow Jones and Nasdaq 100 slide as AI concerns weigh on markets

Dow Jones and Nasdaq 100 fell sharply this week amid persistent concerns about the artificial intelligence sector, with the tech-heavy Nasdaq 100 dropping to 28,840, its lowest level since September 16 and about 8% below its yearly peak. The Dow Jones also declined to 52,220, down from its 2026 high of 54,757. The upcoming earnings season is the main market driver, with hundreds of US companies reporting, including major Magnificent Seven firms like Amazon, Microsoft, Google, and Apple, which have a combined market value exceeding $15.2 trillion. The Federal Reserve will also announce its latest interest rate decision on Wednesday, with economists expecting rates to remain unchanged at 3.75%–4%. Rising oil prices add pressure, with Brent crude trading at $117 and WTI at $103 amid expectations of further US attacks on Iran. Analysts like Ken Griffin and Ray Dalio have warned about the AI sector, and Gartner predicts multi-billion-dollar write-downs in coming years, contributing to the market's recent decline.