Nasdaq Slumps for Second Day as AI Investor Jitters Spark Tech Sell-Off

Tech stocks continued to slide on Wall Street, dragging the Nasdaq Composite lower for a second consecutive day as investor concerns over the future of artificial intelligence sparked market jitters. The index dropped 2.2% over the past two sessions, marking its worst two-day decline since early August. The sell-off was driven by growing uncertainty around AI’s long-term profitability and the sustainability of recent gains in AI-related stocks. While AI remains a central focus for innovation and investment, some investors are beginning to question whether current valuations are too optimistic, especially as companies face rising costs and intensifying competition. The downturn affected major tech names, with shares of semiconductor firms and AI infrastructure providers taking significant hits. Analysts say the market is recalibrating expectations, weighing the transformative potential of AI against near-term challenges like execution risks, regulatory scrutiny, and the pace of commercial adoption. Despite the pullback, many industry leaders maintain confidence in AI’s long-term trajectory, though the recent volatility underscores the market’s sensitivity to shifts in sentiment.