A wave of selling pressure swept through the technology sector on Wednesday, driving the Nasdaq 100 down by more than 500 points. Investors rapidly exited positions in high-flying artificial intelligence stocks, sparking questions about the sustainability of the recent rally and whether a more substantial market correction could be imminent.
Market Fear Gauge Spikes Dramatically
The CBOE Volatility Index (VIX), widely regarded as Wall Street’s primary fear indicator, surged by over 15 percent to reach 19.53 points. This significant jump signals that market participants are bracing for increased turbulence. Trading volume reached 413.76 million shares, substantially exceeding the three-month average, confirming that sellers dominated the session.
The index opened weakly at 25,580 points and continued to deteriorate throughout the trading day, eventually sliding to 25,415 points. Market breadth was overwhelmingly negative, with declining stocks significantly outnumbering advancers across the broader Nasdaq exchange.
AI Market Leaders Lead the Decline
The sell-off hit the poster children of the AI revolution with particular severity. Key performers that had driven previous gains reversed sharply:
Should investors sell immediately? Or is it worth buying NASDAQ 100?
- Palantir Technologies plummeted 7.94 percent
- Tesla declined 5.15 percent
- NVIDIA retreated 3.96 percent
- AMD fell 3.70 percent
Market apprehension appears centered on whether extended months of gains have pushed technology valuations to unsustainable levels. These concerns have been amplified by cautionary statements from leading banking executives who have warned about potential market corrections ahead.
Only a handful of companies managed to advance against the downward trend. Marriott International gained 3.16 percent, Old Dominion Freight Line added 2.80 percent, and O’Reilly Automotive climbed 2.32 percent.
Technical Indicators Flash Warning Signals
From a technical analysis perspective, the Nasdaq 100 is displaying concerning patterns. The Relative Strength Index (RSI) shows negative divergence, suggesting weakening upward momentum. The 25,000-point level now represents a critical support threshold—a sustained break below this mark could signal the beginning of a deeper corrective phase.
Market technicians are closely monitoring the 50-day moving average. A decisive breach of this technical level would indicate a more significant potential trend reversal. The coming trading sessions will prove crucial in determining whether technology shares can find stability or if the selling pressure will intensify further. Given the substantial increase in market volatility, investors should prepare for continued turbulence in the near term.
Ad
NASDAQ 100 Stock: Buy or Sell?! New NASDAQ 100 Analysis from November 5 delivers the answer:
The latest NASDAQ 100 figures speak for themselves: Urgent action needed for NASDAQ 100 investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from November 5.
NASDAQ 100: Buy or sell? Read more here...











