Tech Stocks Tumble for a Second Day. Here's What's Behind the Selloff.

TL;DR

Tech stocks, including Alphabet, SpaceX, and Nvidia, experienced a selloff for a second day due to investor doubts about AI profit generation.
The Nasdaq Composite shed 2.2%, and other indexes like the S&P 500 also declined.
Industry leaders such as Meta Platforms and Microsoft have entered bear market territory.
Investors are demanding more evidence that significant AI investments will translate into revenue growth and profits.
Data shows a small percentage of consumers are paying for AI services, though usage is growing.
Concerns about potential interest rate hikes later this year are also contributing to market anxiety.
The tech rout has had global effects, with South Korea's Kospi tumbling significantly.
Analysts suggest the pullback is a reasonable consolidation after a strong rally in tech and semiconductor stocks.

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