Nasdaq 100 Faces an AI Reality Check as Valuation Concerns Mount

Technology stocks face a significant pullback as investors reassess stretched valuations and rising AI infrastructure costs. The Nasdaq 100 has fallen over 4% this week, with Apple leading declines after announcing price increases due to higher semiconductor costs. Concerns mount over whether massive AI investments can generate sufficient near-term profits, compounded by a more hawkish Federal Reserve outlook that could increase borrowing costs.