The Nasdaq-100 briefly flirted with correction territory, defined as a 10% drop from recent peaks, before narrowing its losses. This volatility underscores a growing appetite for stability over speculative growth. Salesforce, Sherwin-Williams, and Coca-Cola emerged as the primary beneficiaries of this rotation, each climbing more than 5%. Consumer staples outperformed other S&P 500 sectors, posting a 2.7% gain as traders recalibrated their portfolios.

Global markets mirrored this tech-heavy exodus. Japan’s Nikkei index shed 4%, while South Korea’s Kospi plunged 10%. These declines reflect deepening anxiety regarding the escalating costs of AI infrastructure and intensified competition from China. Meanwhile, energy markets remain in flux; Brent crude futures dipped below $82 a barrel as diplomatic efforts continue to stabilize the Strait of Hormuz.