A broad-based reversal is underway in the technology sector, driven by growing investor caution regarding artificial intelligence exposure.
A key index of chip manufacturers fell 7% in the session, marking a sharp reversal for a group that had more than doubled its value since the lows triggered by the war.
The decline underscores a shift in sentiment as traders reassess the sustainability of the AI-driven rally.
The selling pressure extended to cybersecurity firms, which saw their recent rally reverse despite Anthropic’s launch of the Mythos AI model.
The new release had been expected to bolster investor confidence in the sector, but the market response was muted.
Earnings reports from key players in the cybersecurity space failed to demonstrate the robust growth trajectory that had previously supported higher valuations, leading to a pullback in shares.