Nasdaq Falls 2% as Investors Sell Tech Stocks, Oil Prices Rise
Listen to the story
The Nasdaq fell 2% on Wednesday, putting the tech-heavy index on track for its worst week since June.
The drop came as investors pulled money out of AI-related stocks, a move known as a sector rotation.
A rotation happens when investors sell stocks in one industry and buy stocks in another, often because they think prices have risen too high.
Many AI companies have seen their stock prices grow quickly over the past year, and some investors now worry these prices are too high.
At the same time, oil prices rose, adding extra pressure on markets. Higher oil prices can raise costs for businesses and consumers.
The S&P 500, which tracks 500 large US companies, also fell because of the wider tech selloff.
A selloff is when many investors sell stocks quickly, causing prices to drop sharply across the market.
News outlets reported that Wall Street stocks fell broadly during the trading day, with technology shares among the hardest hit.
This week's losses mark one of the toughest stretches for tech stocks since the summer.
Analysts are watching closely to see whether the sell-off in AI stocks continues or whether investors return to buying them soon.
Vocabulary10 words
- Nasdaq
- a stock market index, mostly of technology companies
- investors
- people or groups who put money into stocks
- AI
- artificial intelligence; computer systems that act smart
- rotation
- moving money from one type of investment to another
- oil
- a fuel used widely in industry and transport
- S&P 500
- an index of 500 large US companies
- selloff
- a fast drop in prices caused by many people selling
- Wall Street
- the area in New York linked to US financial markets
- index
- a number showing changes in a group of stock prices
- sector
- a part of the economy, like technology or energy
📚 Ready to use these words in a real conversation?
Practice live with a real tutor on Preply.
Quiz
Answer key
1. Investors rotating out of AI stocks 2. Moving money from one type of stock to another 3. False
✅ Nice work on the quiz!
Keep the momentum going — book a live English lesson with a Preply tutor.
Fill-in-the-blank listening
Play the audio again and fill in the missing words as you listen.
The Nasdaq fell 2% on Wednesday, putting the tech-heavy index on track for its worst week since _____.
The drop came as investors pulled money out of _____-related stocks.
This move is known as a sector _____.
A rotation happens when investors sell stocks in one industry and buy stocks in _____.
At the same time, _____ prices rose, adding extra pressure on markets.
The _____, which tracks 500 large US companies, also fell.
A _____ is when many investors sell stocks quickly, causing prices to drop.
News outlets reported that _____ stocks fell broadly during the trading day.
This week's losses mark one of the toughest stretches for tech stocks since the _____.
Discussion questions
- Why do you think investors suddenly moved money away from AI stocks?
- How might rising oil prices affect everyday businesses?
- Do you think tech stocks will recover quickly after a selloff like this? Why or why not?
- Have you ever followed stock market news? What interests you about it?
🎓 Enjoyed this story?
Turn today's reading into real speaking practice with a live Preply tutor.
