Nasdaq 100 lags as AI valuation concerns weigh on tech stocks

The Nasdaq 100 is underperforming other major indices due to growing investor caution over AI valuations and potential regulatory risks, with semiconductor weakness weighing on tech stocks. The index faces key technical support at 28,100 and resistance at 28,800–29,000. Following the Democratic midterm sweep, the US dollar weakened while oil prices fell 9-10%, boosting global equities and gold. However, tech shares lagged as Qualcomm's disappointing smartphone chip sales and heavy selling in semiconductor names like SK Hynix and Samsung dragged markets, with South Korea's KOSPI falling over 5%. Despite upbeat long-term memory demand commentary, including supply contracts extending to 2029, investors are increasingly concerned about valuations and how much of the AI growth story is already priced in. A daily close below 28,100 could trigger a deeper correction toward 27,200, while a break above 28,800–29,000 would signal potential bullish momentum.