Nasdaq Index: AI Fears Hit Tech Stocks as US Indices Slide Today – Forecast Analysis

Group 1: Technology Sector Performance - The "Magnificent Seven" stocks, including Apple, Meta Platforms, and Amazon, are leading a selloff in the technology sector, with Apple down about 3% and Meta and Amazon down about 2% [1] - The iShares Expanded Tech Software Sector ETF (IGV) has decreased by approximately 3%, now sitting 32% below its recent high, with AI-focused companies like Palantir Technologies and Oracle also contributing to the decline [2] - Networking hardware manufacturers, such as Cisco Systems, are experiencing significant losses, with Cisco down about 11% [2] Group 2: Shift to Old Economy Stocks - Investors are moving towards "old economy" stocks, which include sectors like machinery, financials, and energy, as technology investments appear to be faltering [3] - Companies like Walmart and Boeing have become more attractive to investors, with Walmart up 3% and Boeing up 2% [3] - The Dow Jones Industrial Average, which has limited exposure to technology, recently reached a record high of over 50,000 [3] Group 3: Economic Data and Fed Policy - Economic data is becoming increasingly important, as reports could influence Federal Reserve policy and interest rates, particularly looking ahead to 2026 [4] - A strong U.S. jobs report may have set the stage for a potential rate cut by the Fed in June, although market reactions have been limited [4] - The upcoming consumer inflation report could lead to significant investor reactions, especially if it exceeds forecasts, potentially prompting considerations for a September rate cut [4]