The Nasdaq 100 Index has entered correction territory, losing over US$2 trillion in value in just over three weeks due to a sharp rotation away from Big Tech stocks.

The index fell 2.4% on Friday, bringing its total decline since a July 10 record to more than 10%. Despite this drop, the index is still up nearly 10% for the year.

Major tech stocks, including Nvidia Corp. and Tesla Inc., have seen significant declines, with both down more than 20% from recent highs, placing them in bear-market territory.

Microsoft Corp. and Amazon.com Inc. have also lost over 10%, although most major tech stocks, except Tesla, remain higher for the year, BNN Bloomberg has reported.

Amazon dropped 8.8% on Friday due to heavy AI spending plans, and Intel Corp. fell 26% on a grim forecast, marking its biggest one-day percentage drop since at least 1982.

Written by B.C. Begley