Tech Stocks Experience Significant Decline
The U.S. technology sector has faced a steep downturn, with stocks experiencing major losses over the past three months. The Russell 1000 Growth index has decreased by 3.7% since Halloween, contrasting sharply with the Russell 1000 Value index, which has risen by 8.4% in the same timeframe. This shift indicates a growing investor preference for value stocks as concerns about the sustainability of artificial intelligence (AI) growth mount, a trend referred to by analysts as “AI fatigue.”
Last week alone, several major tech players suffered significant drops, including Microsoft, which fell 11% in one day—its largest single-day decline since March 2020—following a report of slowing cloud revenue. Furthermore, the IGV Software index is down nearly one-third from its September peak, raising alarms that AI technology could disrupt existing software providers.
