Nasdaq Falls 4.5% for the Week, Ending Two-Week Win Streak; Strategy Drops 26%, Arm Slides 24% Leading Declines
0xBroomberg
The Nasdaq fell roughly 4.5% this week, snapping a two-week winning streak; rising concerns over AI valuations and reports that OpenAI may delay its IPO to 2027 triggered a broad tech selloff, pushing capital into defensive sectors.
Why did the Nasdaq reverse course this week?
The Nasdaq Composite dropped about 4.5%, ending two consecutive weeks of gains.
Two catalysts hit at once: mounting worry that AI-linked stocks are overvalued, and reports that OpenAI is considering pushing its IPO back to 2027.
This means → confidence in "can AI justify these prices" is shifting from optimism to wait-and-see.
Who led the losers?
Strategy (MSTR) fell 26.2%, the week's biggest Nasdaq loser, as Bitcoin slid to roughly $58,000 — its lowest since 2024 — before recovering to about $60,000 by Friday.
Arm Holdings (ARM) dropped 23.9% and Western Digital (WDC) fell 21.4%, both giving back the prior week's gains.
Four of the top five weekly decliners were tech names: Strategy, Arm, Western Digital, Rocket Lab (−21.1%), plus CoreWeave (−18.1%).
In plain terms = last week's biggest winners handed nearly all of it back.
Where did the money go — what does the winners list tell us?
The top five weekly gainers: Axon (+9.8%), Vertex Pharmaceuticals (+8.8%), American Electric Power (+8.7%), Keurig Dr Pepper (+8.6%), and Shopify (+7.4%).
Shopify was the only tech name in the top five; the rest span pharma, utilities, and consumer staples.
This reflects a clear rotation out of tech into defensive, non-tech sectors — a textbook risk-off repositioning.
What to watch next week?
Whether this tech selloff stabilises depends on two things: fresh signals supporting the AI capital-expenditure narrative, and further clarity on the OpenAI IPO timeline.
In plain terms = the market needs new evidence that "AI is actually making money" — without it, the valuation correction may continue.
Content is for reference only, not financial advice.