Nasdaq Plunges 5.5%, Shatters July Floor

Stock markets are in the midst of a sharp selloff.

The Nasdaq Composite opened below its 200-day moving average and has been declining steadily ever since. The index has now fallen through the July low, reaching its weakest point since April.

Nvidia is weighing heavily on the index, dropping 8.75%, while Micron is plunging 16.4%. I previously discussed the factors behind the selloff in Micron shares.

Apple shares, meanwhile, are viewed as a relative safe haven because they have stayed clear of the AI surge. Apple is down just 0.5% after reaching a 52-week high earlier in the session. Berkshire Hathaway is also up 0.6%, as its large cash hoard is seen as ammunition for potential deployment during a downturn.

Yesterday's big gains in Microsoft and Amazon have largely evaporated, with the stocks falling 3.4% and 4.4%, respectively.

Overall, the selling is heavily focused on AI-related names, especially those tied to the infrastructure buildout. Money is rotating into stocks seen as less exposed, with Walmart and Costco both trading sharply higher today.