Nasdaq 100 hits third correction of 2026 amid tech stock selloff

The Nasdaq 100 Index dropped up to 4.5% on Friday, completing a decline of over 10% from its recent peak and entering its third technical correction of the year.

The selloff followed discouraging quarterly earnings reports from AI heavyweights Alphabet and Amazon, alongside Intel and ServiceNow.

Market strategists noted that investors are increasingly questioning the return on investment for artificial intelligence spending amid rising sector volatility.