Nasdaq 100 nears correction territory as AI investment doubts pile up

The Nasdaq 100 is flashing warning signals: a bearish double top formation has emerged below the 50-day moving average, driven by growing skepticism that the AI investment bonanza will actually pay off. The technical picture is getting ugly On July 7, the Nasdaq dropped 1.16% while the S&P 500 slipped 0.45%. The PHLX semiconductor index dropped 4.65% on the same day, despite positive earnings from Samsung. On June 23, a broader tech selloff dragged the Nasdaq down 2.2% and the S&P 500 by 1.43%. The catalyst was rising AI infrastructure costs and questions about when those costs translate into real revenue. The concentration problem no one wants to talk about Seven tech companies currently account for approximately 30% of the entire S&P 500’s value. Names like Nvidia, AMD, Micron Technology, and Palantir have been under increasing pressure. Palantir saw roughly an 8% drop in November 2025 even after reporting strong earnings. A 10% decline in stocks that make up 30% of the index translates into a 3% drag on the broader market before anything else even moves. Why crypto investors should be paying attention Bitcoin and the broader crypto market have shown increasing correl...