Watch Desk posted an update
A technology sell-off can reach well beyond chipmakers: the sector still made up more than 35% of the S&P 500’s market value at Thursday’s close, the Economic Times reports, citing Reuters. That makes AI-related weakness a broader market concern, not just a bad day for technology shares.
Why it mattersThe report says the tech sector’s forward price-to-earnings ratio fell to 17.1, below the S&P 500’s 17.9 for the first time since 2017. That is a valuation measure, not proof that the market has finished falling or that AI alone caused the decline. Investors are also watching upcoming results from CoreWeave and Nvidia, alongside economic and political developments. How much of the wider market’s risk should investors now treat as tied to AI spending?
Discuss: With technology making up more than a third of the S&P 500, should investors treat AI-related weakness as a risk to the whole market, or is that too blunt a reading?
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