US tech stocks have fallen sharply for two consecutive days, with the Nasdaq dropping below 21,000 points. Has the 'August curse' arrived as expected?
After the Nasdaq recorded its second-largest single-day drop since the 'tariff panic' in April, it opened lower today, falling below 21,000 points intraday, with the tech sector, represented by AI, seeing sell-offs for two consecutive days.
The market generally believes the core reason for this round of correction is doubts about the commercial returns of AI and concerns over potential bubbles. The Financial Times reported that some traders attributed the decline to a report released by an MIT research institute on Monday. The report pointed out that up to 95% of companies have seen no return on their generative AI investments, with only about 5% of AI pilot projects achieving millions in value. It was the AI technology boom that had driven the continuous rise of U.S. stock market over the past few months.
Goldman Sachs had warned that U.S. stocks were entering a 'dangerous August.' Its strategist Scott Rubner emphasized in a report in early August that from late July to mid-September is a period of highly challenging market returns. Data shows that over the past thirty years, the S&P 500's average returns in August and September have been the lowest among all months. This seasonal weakness is colloquially referred to by market participants as the 'August curse' or 'September effect.' Historical patterns are creating headwinds, and any potential negative catalysts could be amplified during this fragile period, triggering a market correction.
OpenAI CEO Sam Altman also warned that the AI sector might be brewing a bubble and reminded investors that they 'could lose a lot of money.' This statement further weakened the support logic for high-valuation AI concept stocks.
Overview of Hot Tech Stocks and Leveraged/Inverse ETFs
| AI-related Stocks | Leveraged/Inverse ETFs |
| $NVIDIA(NVDA.US) | $GraniteShares 2x Long NVDA Daily ETF(NVDL.US) $Direxion Daily NVDA Bear 1X ETF(NVDD.US) |
| $Meta Platforms(META.US) | $GraniteShares 2x Long META Daily ETF(FBL.US) $Direxion Daily Meta Bull 2x Shares(METU.US) |
| $Tesla(TSLA.US) | $Direxion Daily TSLA Bull 2X Shares(TSLL.US) $GraniteShares 2x Short TSLA Daily ETF(TSDD.US) $GraniteShares 1.25 Long TSLA Daily ETF(TSL.US) |
| $Amazon(AMZN.US) | $Direxion Daily AMZN Bull 2X Shares(AMZU.US) |
| $Microsoft(MSFT.US) | $Direxion Daily MSFT Bear 1x Shares(MSFD.US) $GraniteShares 2x Long MSFT Daily ETF(MSFL.US) $Direxion Daily MSFT Bull 2X Shares(MSFU.US) |
| $Apple(AAPL.US) | $GraniteShares 2x Long AAPL Daily ETF(AAPB.US) $Direxion Daily AAPL Bear 1x Shares(AAPD.US) $Direxion Daily AAPL Bull 2X Shares(AAPU.US) |
| $Palantir Tech(PLTR.US) | $GraniteShares 2x Long PLTR Daily ETF(PTIR.US) |
| $Broadcom(AVGO.US) | $Defiance Daily Target 2X Long AVGO ETF(AVGX.US) |
| $AMD(AMD.US) | $Direxion Daily AMD Bear 1X Shares(AMDD.US) |
| $Coreweave(CRWV.US) | $Tradr 2X Long CRWV Daily ETF(CWVX.US) |
| $AppLovin(APP.US) | $Tradr 2X Long APP Daily ETF(APPX.US) |
| $Marvell Tech(MRVL.US) | $GraniteShares 2x Long MRVL Daily ETF(MVLL.US) |
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