Nasdaq Drops 11% From Its Peak. Is This a Buying Opportunity?

The Nasdaq has officially entered correction territory after Thursday’s 5.52% plunge, its biggest single-day drop since April 2025. The index is now down around 11% from its recent record high, wiping out trillions of dollars in market value.

The selloff goes beyond profit-taking. Investors are growing concerned that political pressure on US data centre construction could slow the AI infrastructure boom, putting the huge investments behind the technology sector under fresh scrutiny. Semiconductor stocks took an especially heavy hit, with the Philadelphia Semiconductor Index falling 12.25%.

History suggests the pain may not be over — but neither is the recovery story.

Looking at the past 10 Nasdaq corrections, further selling often followed within the first month. However, in nine of those 10 cases, the index returned to gains within six months.

From correction lows, the Nasdaq has historically gained an average of 9.41% over three months and 17.03% over six months.

That does not guarantee a quick rebound this time. If concerns over AI spending and data centre restrictions deepen, valuations could face further pressure.

For Nasdaq traders, the near-term focus is whether selling pressure begins to ease — or whether the market needs a deeper reset before buyers return.