The Nasdaq 100 Index is set to enter a correction, dropping 10% from its peak in just 38 trading days.

Glonghui, July 28 — The Nasdaq 100 Index is set to enter a correction, as concerns mount among investors over the ultimate returns of artificial intelligence investments, putting pressure on the tech giants that have driven most of the U.S. stock market's gains this year. This tech-heavy index fell 1.6% on Tuesday, heading for a close in correction territory. A correction is typically defined as a drop of 10% or more from a recent peak. The index reached this technical threshold in just 38 trading days, forming a sharp contrast with the last correction in March. At that time, the index took more than 100 trading days to slide from its record high in October 2025 into correction range. Additionally, three other companies making major investments in artificial intelligence will also report earnings this week: both Microsoft and Meta Platforms Inc. are scheduled to release financial results on Wednesday, while Amazon will announce its earnings on Thursday afternoon.