Nasdaq plunges into correction territory as midterm results raise fresh questions about AI boom
Investors are dumping AI-linked shares as fears grow that tighter scrutiny of data center construction could slow spending and squeeze returns.
- On Thursday, the Nasdaq Composite officially entered correction territory, falling more than 10% below its October 6 record high as investors retreated from AI-linked infrastructure stocks following Democratic midterm election victories.
- Democratic midterm wins prompted fears of stricter data center regulation; UBS analysts estimate that 30% of expected 2028 capacity additions now face potential construction pauses, threatening the AI buildout.
- Nvidia and AMD led the rout, with Nvidia falling 8.7% as the Nasdaq-100 shed over $2.2 trillion in market value, reflecting the intensity of the retreat from chip and data center stocks.
- Hedge funds cut leverage and reduced teams as volatility soared; Goldman Sachs reported that funds are "selling back pockets of the market" they had recently bought, compounding losses.
- JPMorgan analysts expect the AI boom to persist but become costlier and slower in coming years, marking the steepest decline since April 2025's "Liberation Day" tariff sell-off as growth assumptions recalibrate.
535 Articles
535 Articles
With their demonstrative support for Donald Trump, leading tech billionaires hoped for an innovation-friendly policy. But democrats' electoral successes could cripple their accounts: instead of backing, stricter rules and stricter controls threaten. At stake are billions of investments, while a political power struggle for the future of artificial intelligence begins.
Rutland Herald
Global shares skid after AI worries send Wall Street tumbling
Global shares have tumbled following a broad selloff on Wall Street of shares related to artificial intelligence. Shares fell in early Friday trading in France, Germany and Britain. In Asia, benchmarks finished lower in Tokyo, Seoul, Sydney, Hong Kong and…
The European exchanges were red on Friday, hit by the wave of declines on the American and Asian markets, covered by a real "AI panic" after years of growing enthusiasm for artificial intelligence, the main engine of the market "bull" after 2022. Actions in the technology sector in the USA and Asia fell ...
FTSE 100 plunges as $3tn wiped off global markets in AI sell-off sparked by fears of tech bubble
London’s stock market has been swept into a global technology sell-off after mounting fears over an artificial intelligence bubble triggered billions of dollars in losses across the world’s biggest companies,… The post FTSE 100 plunges as $3tn wiped off global markets in AI sell-off sparked by fears of tech bubble appeared first on London Business News
The US stock market recorded the largest drop in recent years: Nasdaq's technology index collapsed by 5.52 per cent, and the industrial Dow Jones lost more than 1,800 points (3.44 per cent), leading to a one-way loss of nearly $2 trillion in market capitalization.
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