Renewed selling in several tech giants weighed on stocks amid lingering anxiety over the outlook for artificial intelligence that has recently hammered the group as well as dozens of companies across a number of industries. Bitcoin sank 3%. Gold tumbled.

Following its longest weekly slide since 2022, the Nasdaq Composite lost 1.2% on Tuesday as US traders returned from a holiday. A closely watched exchange-traded fund tracking software firms dropped 2.4%. Losses deepened as the S&P 500 breached a key technical level: its average price of the past 100 days.

Apple up 1%; AMD down 5%; Tesla, Micron down 4%; Alphabet, TSMC, Nvidia down 2%; Microsoft, Meta down 1%.

The turmoil unleashed by AI reflects fears that are increasingly at odds. One is that it’s poised to disrupt entire segments of the economy so dramatically that investors are dumping the stocks of any company seen at the slightest risk of being displaced by the technology. The other is a deep skepticism that the hundreds of billions of dollars spent in AI will deliver big payoffs anytime soon.

In what’s turning out to be a great quarter for corporate earnings growth, mentions of AI disruption on management calls almost doubled compared to the previous quarter, a Bloomberg News analysis of transcripts shows. While the technology hasn’t yet noticeably reduced earnings estimates, investors aren’t waiting around and instead are selling any company perceived to be at risk.

AI disruption and continued tech rotation overshadowed last week’s jobs and inflation data, and unless this week’s economic numbers deliver notable surprises, the same dynamic could play out again, according to Chris Larkin at E*Trade from Morgan Stanley.

“The market is still close to records highs, but it may not feel that way to some investors because of the sharp selloffs that seem to derail upswings almost as soon as they begin,” he said. “If that theme persists, it could result in a bumpy road for the market, even if the overall trend is to the upside.”

That said, Larkin notes some pullbacks may offer opportunities in industries and specific stocks where AI is just as much of a potential tailwind as a headwind.