Nasdaq 100 Drops 7% From Highs as Investors Flee Tech Stocks

The Nasdaq 100 has fallen over 7% from its peak as investors rotate out of crowded AI and semiconductor names rather than triggering a broad market crash. The sell-off began June 3 with a 0.9% drop in software stocks, accelerated after the June 5 jobs report showed 172,000 payrolls versus 85,000 expected, lifting the 10-year yield to 4.544% and sparking a 4.8% single-day plunge. A brief June 8 rebound faded into renewed selling June 9, with the SOXX plunging 8.6% amid concerns over stretched AI capex, data-center delays, and upcoming IPO supply from SpaceX, OpenAI, and Anthropic. The latest commentary frames the move as a liquidity-driven rotation into quality large-caps such as Microsoft at 20.7x forward earnings.