Short answer
Tech stocks usually fall when interest rates rise, when big earnings disappoint, or when investors decide valuations have run too far.
Why are tech stocks falling?
What happened
The Nasdaq slipped, led by mega-cap tech and semiconductor names, while defensive sectors held up.
Why it happened
Tech companies are 'long-duration' assets — most of their value comes from future profits. When rates rise, those future profits are worth less today. Any hint that AI spending might slow also hits chipmakers hard.
Why investors care
Tech is now the biggest chunk of the S&P 500, so when tech falls the whole index usually falls with it.
How it affects ordinary people
If you own an S&P 500 or Nasdaq ETF, your balance is down a little. Long-term investors usually see these dips as normal market noise.
FAQ
Is this the end of the AI rally?
Nobody knows. Pullbacks happen inside longer uptrends, and one down week doesn't reverse a multi-year trend.
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Educational content — not financial advice.