The U.S. stock market showed an unusual divergence.

📊 Results for the week ending October 16:

🔴 Nasdaq Composite: −4.48%

🟢 Dow Jones: +0.68%

📉 S&P 500: about −1.9%

The gap between the Nasdaq and the Dow reached 5.16 percentage points—the largest weekly divergence since July 2002.

🤖 Why are tech stocks weakening?

Investors are increasingly scrutinizing the returns on massive investments in artificial intelligence. Heavy spending on data centers, financial pressure, and doubts about future profitability are intensifying pressure on the technology sector.

Another factor is the rising price of Brent crude, which has approached $110 a barrel. Expensive energy could sustain inflation and make it harder to ease monetary policy.

💡 What does the divergence between the indices mean?

This doesn’t necessarily signal a collapse of the entire stock market. Rather, it suggests that investors are becoming more selective: reassessing the risks of technology companies and looking for more attractive opportunities in other sectors.

However, one week does not confirm the start of a prolonged downturn. Much will depend on corporate earnings reports, the outlook for AI, and the further trajectory of inflation.

₿ What about Bitcoin?

If $BTC remains resilient while tech stocks fall, it attracts attention. But short-term resilience doesn’t prove that Bitcoin is completely independent of the stock market.

During large-scale sell-offs, cryptocurrencies can also fall as risk appetite wanes and investors seek liquidity.

🎯 My conclusion

The historical analogy with 2002 is interesting, but it doesn’t guarantee a repeat of the same collapse scenario.

For investors right now, the important thing is not to chase falling prices, but to assess the quality of assets, buy gradually, and keep reserves for new opportunities.

What do you think: is this a temporary correction in overvalued tech stocks, or the beginning of a deeper reassessment of the AI boom?

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