Tech stocks have experienced significant sell-offs, with the Nasdaq and S&P 500 logging their worst days since 2022, driven by disappointing earnings from major companies like Alphabet and Tesla. Investors are increasingly skeptical about the immediate profitability of massive AI investments, leading to a rotation into more value-oriented and small-cap stocks. While tech giants such as Nvidia, Microsoft, and Apple are struggling, sectors like utilities and healthcare are gaining ground. Analysts suggest that this market correction is a healthy reset, driven by the need for tech firms to demonstrate tangible returns from their AI spending. Upcoming earnings reports from other tech giants will be crucial in determining if this trend continues. Additionally, expectations for Federal Reserve rate cuts are influencing market dynamics, pushing investors to reassess their portfolios.