Tech stocks sound an uncomfortable 2008 echo
QQQ•Technology stocks make up 40% of the S&P 500, and a sell-off on AI fears has revived concerns about past booms and busts. The Nasdaq fell 2.6% on October 22, while Meta Platforms dropped 7%, AMD fell 8% and Micron declined 6%.
1. Tech sell-off revives concerns
Technology stocks now account for 40% of the S&P 500, and a sharp sell-off on AI fears has echoed the lopsidedness of earlier booms and busts. Unlike the dotcom era, frenzied activity is lifting earnings faster than valuations, but the financial crisis shows that this can pose a bigger risk. The Nasdaq Composite fell 2.6% on October 22, its biggest one-day decline since June; Meta Platforms fell 7%, AMD declined 8% and Micron fell 6%.
