Wall Street is bracing for a turbulent week as investors grapple with the recent sell-off in AI-focused technology stocks. The Nasdaq has officially entered correction territory, dropping over 10% from its recent peak, largely due to political anxiety following the midterm election results. Concerns that shifting political power might hinder the expansion of AI data centers—a cornerstone of this year’s market rally—have left the tech sector particularly vulnerable, with semiconductor indices suffering their sharpest single-day declines in over six years.

As volatility remains elevated, the market’s resilience will be put to the test by the upcoming Consumer Price Index (CPI) report. Investors are closely monitoring inflation data to gauge whether the Federal Reserve will proceed with interest rate hikes in December. Coupled with critical earnings reports from companies like CoreWeave and Applied Materials, the coming days will be pivotal in determining if the current "buyers' strike" in tech is a temporary setback or a sign of deeper structural shifts. With the market balancing political uncertainty against monetary policy expectations, analysts are warning that the path forward remains fragile.