Global stock markets experienced a significant decline due to concerns over the growth of tech companies. The Nasdaq and S&P 500 saw a sharp decrease, while the Dow Jones remained positive.
The sell-off was driven by disappointing earnings from tech giants like Alphabet and Tesla. However, the US economy provided some relief as GDP data showed stronger-than-expected growth in the second quarter.
This data suggests that the economy is growing at a faster pace and may support a potential rate cut by the Federal Reserve. The tech sell-off is seen as a healthy market correction, as investors rotate away from overvalued tech stocks driven by AI enthusiasm.
As the market normalizes, small-cap stocks are expected to perform well. Despite the volatility in the market, experts remain optimistic about the future, with seasonality indicating more upside potential.
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