Nasdaq 100 Slides Over 10% as Weak Tech Earnings Trigger Third 2026 Correction

Nasdaq 100 has slipped more than 10% from its recent high, putting the index on track for its third technical correction of 2026 after a string of weak earnings from major tech firms. The gauge fell as much as 4.5% on Friday, completing a decline that began with a 3% plunge earlier in the week. The drop follows disappointing results from Alphabet Inc., the owner of Google, and Amazon.com Inc., both key players in the artificial‑intelligence build‑out. Intel Corp. and ServiceNow Inc. also posted earnings that sparked steep declines in their shares. Earlier market swings were linked to the outbreak of the Iran war and a summer‑time selloff in semiconductor stocks. "The entire sector is getting hit, so it's creating more havoc in the broad stock market," said Matt Maley, chief market strategist at Miller Tabak Co LLC, describing the plunge that pushed the index to the brink of a correction. Volatility has become the new norm; the last time the market recorded three or more 10% moves in a single year was 2022, when Covid‑era inflation and Federal Reserve rate hikes drove U.S. stocks into a bear market. "After years of operating under the assumption that all money lent to or invested in AI would yield phenomenal returns, sober questions are being asked about ROI, ROE, and in some cases, return of capital," noted Steve Sosnick, chief strategist at Interactive Brokers LLC. Many tech firms have shifted from cash‑flow‑generating machines to large borrowers, a change that fuels the frequent swings seen in the sector. ## Context