This isn't a full-blown market correction , but rather a short-term shakeout driven by profit-taking and sector shifts—similar to the minor dips seen earlier in the year that quickly resolved into rebounds. Fundamentals remain supportive: steady consumer spending, improving corporate earnings, and anticipation of a Federal Reserve rate cut this month are poised to reignite momentum into 2026. Sentiment indicators also flash contrarian buy signals, with volatility presenting opportunities rather than alarm bells.For long-term investors, this dip qualifies as a prime time to add positions, particularly in quality growth names like those in tech or the Magnificent Seven, which have led the year's gains but are now trading at modest discounts. Historically, S&P 500 corrections have delivered strong forward returns, averaging positive performance in the following year.focus on diversification and your risk tolerance—but sitting on the sidelines risks missing the rebound.
Tech Meltdown Friday: Bounce Next Week or More Pain Ahead?
U.S. tech stocks plunged, with AI-related names seeing a broad sell-off as capital rotated into defensive sectors. Weakness in the S&P 500 and Nasdaq was largely driven by a sharp drop in Broadcom, whose shares tumbled 11.4% on the day. Despite beating earnings expectations, investors were disappointed by lower-than-expected AI margins and the lack of AI guidance for fiscal 2026, weighing heavily on the stock. After Friday’s sell-off, will the market stage a strong rebound next week — or continue to slide?
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