The Nasdaq 100 (NDX) is trading lower on Wednesday as the tech selloff has shown no signs of stopping. Software stocks have exacerbated the fall on fears that AI will increase competition in the industry and dampen sales.
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Nvidia (NVDA) CEO Jensen Huang doesn’t believe that’s the case. “There’s this notion that the tool in the software industry is in decline, and will be replaced by AI… It is the most illogical thing in the world, and time will prove itself,” he said at an AI conference hosted by Cisco (CSCO).
Why Is the Nasdaq 100 Down Today?
Even the AI stocks themselves are facing pressure. Despite reporting a double beat on revenue and earnings, as well as higher-than-expected first-quarter guidance, Advanced Micro Devices (AMD) is racing lower.
Elsewhere, a concerning labor market update from ADP is also contributing to the downside. The U.S. added just 22,000 private payrolls in January, missing the consensus estimate of 45,000 and falling from 41,000 in December. In 2025, private employers added 398,000 jobs compared to 771,000 jobs in 2024.