The Nasdaq 100 index lost $4 trillion, and 75% of tech stocks entered bear market territory.

The Kobeissi Letter reports that the Nasdaq 100 lost $4 trillion in market capitalization in 25 days, and AI stocks fell more than 13% in October, while the S&P 500 excluding AI stocks rose 8% and hit a record high during the same period. Currently, the S&P 500 is only 3.5% away from its all-time high, but 58% of its components are down at least 20% from their respective highs, 75% of tech stocks have entered bear market territory, and 91% of stocks in the information technology sector are down at least 10% from their peak. The Kobeissi Letter believes the selling pressure is concentrated in technology-related stocks and expects the market to face significant volatility in November.