Nasdaq 100 Enters Correction as Megacap Results Amplify AI Fears

The Nasdaq 100 Index slid into correction territory Monday, falling 1.4% to 27,989.82 as investors turned more pessimistic on Big Tech and the artificial intelligence trade.

A correction is conventionally defined as a decline of 10% or more from a recent peak. The Monday close puts the tech-heavy benchmark squarely in that zone, which marks a clear shift in sentiment toward the group of megacap names that have anchored the index.

The source ties the selloff to megacap earnings results amplifying fears around AI. That framing is notable: the pressure is coming from the very companies that led the rally, not from a peripheral sector. When leadership names drive the weakness, index-level damage tends to compound because of their heavy weighting. That is interpretation, not reported fact, but it helps explain why a single-session drop of 1.4% was enough to confirm the correction.

For active traders, the headline level to anchor on is 27,989.82. It now serves as a reference point for whether the index stabilizes or extends losses. The move also reframes the narrative: AI exposure, long treated as a tailwind, is being repriced as a risk by investors reacting to megacap results.