U.S. stocks had a pretty ugly close on Friday. The S&P 500 finished at around 7659, down about 1.1%; the Nasdaq was around 26140, down about 2.1%; and the Dow was around 52002, down about 0.3%. The weekly figures were even more striking: the Nasdaq fell about 4.5% for the week, its worst week since late June.
The market action is actually pretty straightforward. Tech and AI-related names continued to get hammered, chip stocks weighed on the market, and the VIX briefly approached 22. Investors are clearly steering clear of crowded growth stocks, while energy stocks have held up relatively well as oil prices rise.
I’ve been thinking about something over the past few days: the index losses look manageable, but there’s been heavy selling within individual themes. If you’re still trading on the assumption that “a small Nasdaq dip means it’s time to buy the dip,” you could easily end up buying right at the worst point in market sentiment.
Don't rush to conclusions over the weekend. First, check whether you're heavily invested in AI, chips, and high-valuation growth stocks before deciding whether to make a move.
The above content is for reference only and does not constitute investment advice.
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