The Nasdaq Has Had 4 Big Selloffs Since 2022

The Nasdaq Has Had 4 Big Selloffs Since 2022

The Nasdaq Composite Index 

 has faced four major selloffs since 2022, each marked by declines of 8% or more from recent highs. These selloffs have largely been driven by volatility in AI and technology stock sectors amid shifting economic and policy landscapes.

Details of the Four Selloffs

• The launch of ChatGPT and an AI boom starting November 2022 triggered a surge in tech stock valuations, which subsequently experienced sharp corrections.

• Notably, the Nasdaq fell around 8% from its peak multiple times through 2023 and into 2025 as investors grappled with concerns around stretched valuations in AI-related stocks, evolving Federal Reserve policies, and broader economic uncertainty.

• The most recent selloff in late 2025 was triggered by doubts over the sustainability of AI stock rallies and softening economic data, causing key tech shares to tank.​

Causes and Market Reaction

• The selloffs were linked to valuation concerns among prominent AI and chip stocks such as Nvidia , which saw marked volatility.

• Investors' nervousness around future Federal Reserve interest rate moves and inflation also played a critical role.

• Profit-taking after huge rallies in technology shares caused repeated pullbacks, reflecting a correction of the exuberance from the AI hype.

• Each selloff was accompanied by heightened trading volume and significant swings in major tech names, underscoring the fragile investor sentiment.​

Broader Economic Context

• The market volatility occurred amid a backdrop of fluctuating US job reports, inflation data, and Fed policy signals which amplified uncertainty.

• Sector rotation into defensive areas like healthcare further indicated diminished risk appetite tied to tech's volatility.

• Overall, while the Nasdaq and related tech stocks have shown robust gains over the multi-year period, these four notable corrections underscore ongoing challenges such as valuation risks and macroeconomic sensitivities that investors must navigate.​

This pattern of selloffs reflects the high correlation between the Nasdaq and AI/technology stocks, as well as sensitivity to economic and policy shifts from 2022 through 2025.