Wall Street’s Tech-Driven Slide Deepens as Economic Signals Falter

U.S. equity markets fell sharply today, extending losses into the second session and marking the worst week in months for major benchmarks. The S&P 500 dropped approximately 0.7%, while the Nasdaq Composite slid roughly 1.2% amid mounting concern over high valuations in tech stocks and weak underlying economic data.

What’s behind the move

• Technology names tied to the AI theme, such as Nvidia Corporation and Broadcom Inc., fell by around 2–3% as investors questioned the sustainability of current growth expectations.

• With the ongoing U.S. government shutdown delaying key economic releases, investors are increasingly relying on private-sector reports which show the labour market weakening and consumer sentiment deteriorating.

• The fear gauge, the CBOE Volatility Index (VIX), spiked to a two-week high, indicating rising market uncertainty.

Market implications

• The apparent cooling in tech and growth stocks suggests a broader reassessment of risk assets. The momentum that drove recent highs may be pausing as the market awaits fresh catalysts.

• With fewer reliable data points from official sources, uncertainty around monetary-policy direction has increased—potentially reducing the tailwind for equities.

• Sector rotation may accelerate: investors could shift from high-multiple growth names to more value-oriented or defensive assets in the near term.

What to watch next

• Private and alternative data sets (jobs, consumer spending)—they’re now key in the absence of official releases.

• Corporate earnings in high-growth sectors, especially tech and AI infrastructure, where any miss could deepen the pull-back.

• Fed commentary and signals on future rate moves; with data visibility lower, any hint of policy tightening or delay in easing could affect markets.