Nasdaq 100 and QQQ Enter Correction as AI Worries Persist

The Nasdaq 100 index has entered a technical correction, falling over 10% from its October peak to its lowest level since July 31, driven by persistent investor concerns about a potential bubble in the artificial intelligence (AI) sector. The selloff has hit AI-exposed companies hard, with Intel shares dropping 51% in 30 days following a weak earnings report, while CoreWeave, Nebius, and others fell over 35%. The decline also coincides with the upcoming US midterm elections, though markets often recover after such events. Technical analysis suggests further downside is possible, with the index targeting 27,133, a 50% Fibonacci retracement level. Key upcoming earnings reports from AMD, Arm, and Qualcomm could influence near-term direction.