Nasdaq plunges into correction territory as midterm results raise fresh questions about AI boom
Investors sold AI-linked shares as the Nasdaq shed more than $2.5 trillion in October and fell nearly 4% in a single session, Reuters reported.
- The Nasdaq Composite Index fell nearly 4% to 24,712.60, confirming a correction by sliding more than 10% below its record closing high reached on October 6.
- Sentiment toward AI-linked stocks deteriorated in recent weeks, with the Nasdaq shedding more than $2.5 trillion in market value during October as companies tapped debt markets for infrastructure investments.
- Earnings from Alphabet and Meta last month failed to reassure investors about returns on AI spending, while geopolitical tensions and inflation concerns kept borrowing costs elevated.
- Thursday's slide erased the previous session's gains following the Democrats' sweep of the House and Senate, as investors weighed increased government scrutiny on AI infrastructure expansion.
- Sameer Samana, senior global market strategist at Wells Fargo Investment Institute, cited policy uncertainty under new party control as a risk factor, noting the index faces its second correction this year.
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7 Articles
Nasdaq plunges into correction territory as midterm results raise fresh questions about AI boom
The tech-heavy Nasdaq Composite plunged by as much as 4.85% Thursday as investors weighed whether Democrats’ gains in the midterm elections could lead to a slowdown in the massive data center buildout.
Tech stocks plunge on worries about AI and Democrats’ midterm landslide
Shares in technology companies dropped sharply Thursday, compounding recent declines that have sparked concerns about the durability of the artificial intelligence boom that has driven much of recent U.S. economic growth.
More drops for Nvidia and other AI chip stocks erase Wall Street's rally from the day before
More drops for AI chip stocks are dragging the U.S. market lower, even as much of Wall Street rises following strong profit reports from AppLovin, Tapestry and other companies.
Nasdaq set to confirm correction as AI spending worries mount
The Nasdaq slid more than 10% from its record close on Thursday, on track to confirm a correction as worries over massive AI spending and heightened scrutiny of data-center expansion rattled tech stocks.
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