Nasdaq Nosedive: Index Inches Closer to a Correction Amid Big Tech Valuation Concerns

The Nasdaq Composite index fell by 2.2%, pushed by valuation concerns and economic cooling. Investor worries spurred by softer job reports and disappointing forecasts from Amazon and Intel led to a selloff, leaving the Nasdaq down 10.2% from its record high. The Nasdaq 100 is also nearing correction territory.

The Nasdaq Composite index took a significant tumble on Friday, dropping by 2.2%. This puts the index on the verge of confirming a correction as investor concerns over pricey Big Tech valuations and a cooling economy mounded.

This recent slump is largely attributed to disappointing job reports and forecasts from tech giants Amazon and Intel, which contributed to the Nasdaq's 10.2% fall from its record high of 18,647.45 points, last reached on July 10.

The broader Nasdaq 100 index is also approaching correction territory. Investor sentiment has largely been affected by lackluster earnings from Tesla and Alphabet, coupled with fears that a rally, driven by enthusiasm for AI and anticipated interest-rate cuts by the U.S. Federal Reserve, may be overblown.

(With inputs from agencies.)