Nasdaq drops over 2%; AI stocks sell off across the board
On October 17, the Nasdaq’s losses widened to 2.36%, while the S&P 500 fell 1.19%. Optical module makers COHR and AAOI dropped 6.26% and 7.89%, respectively; memory stocks MU and WDC fell 4.33% and 5.16%; and NVDA slipped 0.95%. AI hardware has been the hardest-hit segment in this selloff.
Risk assets share a common driver and will fall in tandem, but there is spot-market buying support. The assets really being drained of liquidity are these high-beta computing-power narratives, where market-making depth is thin and sell orders worth just a few hundred thousand dollars can cause substantial slippage. In the short term, [it] may pull back to around 110,000 to build momentum. Holding that level would amount to a synchronized shakeout; breaking below it could trigger a cascade of long liquidations in the futures market. A rebound in AI tokens would lag the broader market by one step.
Brothers holding AI tokens, what’s your cost basis—and are you willing to ride this out?
$BTC $TAO $RENDER
On October 17, the Nasdaq’s losses widened to 2.36%, while the S&P 500 fell 1.19%. Optical module makers COHR and AAOI dropped 6.26% and 7.89%, respectively; memory stocks MU and WDC fell 4.33% and 5.16%; and NVDA slipped 0.95%. AI hardware has been the hardest-hit segment in this selloff.
Risk assets share a common driver and will fall in tandem, but there is spot-market buying support. The assets really being drained of liquidity are these high-beta computing-power narratives, where market-making depth is thin and sell orders worth just a few hundred thousand dollars can cause substantial slippage. In the short term, [it] may pull back to around 110,000 to build momentum. Holding that level would amount to a synchronized shakeout; breaking below it could trigger a cascade of long liquidations in the futures market. A rebound in AI tokens would lag the broader market by one step.
Brothers holding AI tokens, what’s your cost basis—and are you willing to ride this out?
$BTC $TAO $RENDER