Tech stocks faced selloff, concerns about market stability, but selling may be overdone

From Nasdaq: 2025-02-25 04:51:00

Stocks like Apple, Alphabet, Microsoft, Alibaba, and Nvidia faced a selloff on Friday, leading to concerns about the bull market’s stability. However, seasonal weakness in late February and normal market drawdowns suggest the selling may have been overdone. Monthly options expiration and government job cuts also contributed to the volatility.

Investors are wary as major indices hover near all-time highs, with AI spending a key concern. Apple plans to invest over $500 billion in AI, while Microsoft refutes rumors of scaling back AI spending. Alibaba, meanwhile, is set to invest $53 billion in cloud and AI infrastructure. Nvidia’s upcoming earnings report will provide more insight into AI spending trends.

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Read more at Nasdaq: Zacks Investment Ideas feature highlights: Apple, Alphabet, Microsoft, Alibaba and Nvidia