Tech selloff reflects sentiment, not fundamentals; Nasdaq-100 seen as a buy over 'safe' stocks like Walmart.

The recent tech selloff is driven more by market sentiment around Democratic midterm wins than by fundamental risks. A divided government makes a federal data center ban unlikely, and state-level pauses only risk about 6% of 2027 AI capital expenditure, with projects likely relocating to other states. If AI spending slows, Big Tech's strong cash flow can support buybacks and dividends, making Nasdaq-100 stocks a defensive buy. At a forward P/E of ~25X, Nasdaq-100 ETFs like QQQM appear safer than traditionally 'safe' stocks such as Walmart, which trade at much higher P/E ratios.

QQQM trades at USD 270.22 with a 1.26% gain as of Nov 07, 2026 21:41 WIB, showing resilience amid tech sector shifts. Walmart, by contrast, is down 1.76% at USD 125.47, reflecting a different market sentiment. The Nasdaq-100 ETF's forward P/E near 25X supports its defensive appeal compared to Walmart's higher valuation on Pluang.