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Biggest U.S. tech sell-off for over a decade points to wider concerns surrounding high valuations — as Nasdaq 100 loses $1 trillion in market value on Wednesday

Sky's Arthi Nachiappan writes that a bloodbath for US tech values on Wednesday has its roots in many areas but they are no longer the only bet in town amid fears their value growth is unsustainable.

While the US presidential race and projections for inflation and interest rates in the country weigh heavily on stocks, Silicon Valley in particular is under pressure to show returns from its multibillion-dollar investments into developing artificial intelligence technology. Alphabet shares fell 5% even though Google's parent company delivered better-than-expected profits, because analysts feared that rising AI investments and other spending could eat into earnings. Rises in valuations in recent years have been focused on a small number of companies whose performance is interconnected, so some analysts have advised investors to spread out the risk and invest across a broader range of stocks.

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