The Nasdaq-100 Had Its Worst Week in 18 Months. History Says the Following Year Has Usually Been Strong.
The Nasdaq-100 experienced its worst weekly performance in 18 months, driven by a sell-off in chip and AI-related stocks. However, historical data suggests that such significant weekly drops are often followed by strong market recoveries over the subsequent year.
Why it matters
Understanding historical market volatility helps investors contextualize current tech sector corrections and long-term growth trends.
The Nasdaq-100 fell about 5.5% in the week ending Oct. 16. The Invesco QQQ Trust ( QQQ -0.01% ) , the exchange-traded fund that tracks the index, dropped around the same amount. That was the index's worst week since the one ending April 4, 2025, when it lost almost 10%.
Chip stocks did a lot of the damage. The VanEck Semiconductor ETF fell around 10% that week, its largest weekly drop since April 2025, while other stocks linked to artificial intelligence (AI) slid, too.
Investors also worried about how much tech firms are borrowing to cover AI-related capital spending , and hotter-than-expected inflation numbers and oil over $100 a barrel added to the pressure.
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