Two weeks ago, the hot technology giants and chip manufacturers were still pushing the Nasdaq 100 index to new highs. But now, this feast seems to have come to a temporary halt, and the narrative of &#34;American exceptionalism&#34; appears to be starting to waver.On Thursday local time, the Nasdaq 100 index plummeted 2.8%, marking a cumulative decline of 9.6% since its record high on February 19—just a step away from the 10% correction threshold. The last time such a rapid correction occurred was during the pandemic crash.<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/4dbfcf97-6ee3-4d08-85c8-07c47935f1c1.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/4dbfcf97-6ee3-4d08-85c8-07c47935f1c1.png"/>In yesterday's sharp decline of the Nasdaq, chip stocks led the way down, with the Philadelphia Semiconductor Index plunging 4.5%, having entered a bear market with a cumulative drop of nearly 24% since its historical peak on July 10, 2023. The &#34;seven tech giants&#34; are also struggling, with their total market value dropping by over $2.6 trillion from the peak in December; among them, Nvidia became the biggest drag on the S&amp;P 500 index on Thursday, with its stock price plummeting 5.7%, accumulating a nearly 20% decline over two weeks.<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/96c43337-ebb7-4807-9bad-823aa7b9e9bd.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/96c43337-ebb7-4807-9bad-823aa7b9e9bd.png"/>Worse still, traders are betting that U.S. chip stocks will continue to decline, while short sellers are heavily shorting tech stocks, pushing the shorting costs of the VanEck Semiconductor ETF to their highest point this year.<h2>&#34;The 'good days' of the market have abruptly ended&#34;</h2>Analysts say that over the past few years, investors have continuously flocked to tech stocks, pondering how to allocate their portfolios, but now this mindset has completely shifted. The market is concerned about Trump's trade disputes, stubborn inflation in the U.S., and mass layoffs dominated by DOGE that could trigger a recession or even stagflation in the U.S.As a result, investors are now considering not what to buy, but what to sell—starting with the tech stocks that have seen the most remarkable gains over the past few years, especially chip stocks.Dave Mazza, CEO of Roundhill Investments, stated:<blockquote>“Investors are reassessing the growth prospects of these stocks, and the market drivers will be news on tariffs and inflation, rather than the future growth potential of artificial intelligence. In other words, the 'good days' of the market have abruptly ended.”</blockquote>Additionally, the rise of China's artificial intelligence capabilities has raised market concerns about the demand outlook for chips. Since January 27, Hong Kong-listed tech stocks have risen 24%, while a basket of large U.S. tech stocks has fallen 12%.It is important to note that this wave of selling does not necessarily mean that the U.S. stock market will decline further, but the sentiment in the U.S. stock market has shifted sharply, contrasting sharply with the market reaction after Trump's election in November last year—in the month following the election day, the S&amp;P 500 index rose by more than 5%, as investors anticipated that the new government would drive economic growthEric Diton, President and Managing Director of Wealth Alliance, stated:<blockquote>&#34;Everyone needs to stay steady because market volatility will be very intense. Traders are nervously watching the impact of tariffs on U.S. multinational companies, which is why tech stocks have become the first targets for selling. This will severely impact major indices, as tech stocks have a very high weight in the indices.&#34;</blockquote>Risk Warning and DisclaimerThe market has risks, and investment requires caution. This article does not constitute personal investment advice and does not take into account the specific investment goals, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Investment based on this is at one's own risk

The Nasdaq 100 index has plunged nearly 10% in two weeks, with chip stocks facing massive short selling. The Philadelphia Semiconductor Index has fallen 4.5%, entering a bear market with a cumulative decline of nearly 24%. Investor confidence in tech stocks has shaken, and the market is concerned that trade disputes and inflation may trigger an economic recession. Analysts point out that market drivers have shifted to tariffs and inflation, rather than the growth potential of artificial intelligence

- The Nasdaq 100 index recently experienced a significant decline, dropping 2.8% and nearing a 10% correction since its peak on February 19.  
- Chip stocks led the downturn, with the Philadelphia Semiconductor Index falling 4.5% and entering a bear market, while major tech companies lost over $2.6 trillion in market value since December.  
- Analysts indicate that investor sentiment has shifted from buying to selling, particularly in technology stocks, due to concerns over trade disputes, inflation, and potential economic recession.

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The Nasdaq has plunged nearly 10% in two weeks, with chip stocks facing significant short selling