A second day of selling pressure hit technology stocks tied to the AI theme on Wednesday, as sentiment cooled after an MIT report questioned the broad profitability of the new technology.
Foxconn's earnings show a shift from consumer electronics to AI servers, impacting ETFs. Apple's decline, Taiwan's role in AI production and niche ETFs are affected.
Small-cap stocks are struggling, while megacaps are thriving. Investors are flocking to megacap ETFs for growth, particularly in AI and semiconductors.
The President said that while he would not approve exports of the full chip, a version that is downgraded by 30% to 50% could be considered at a later date.
Tech stocks staged a full rebound from last Friday's sell-off, with the Nasdaq 100 surging to 23,600 — just shy of the 23,700 all-time high set in late July, as the week’s strong sector earnings and broad gains among the Magnificent Seven fueled the rally.
