Investors Wipe $2.5 Trillion Off Nasdaq as Blue Tsunami Prompts AI Fears
Weak AI earnings and a Democratic midterm sweep erased about $2.5 trillion in Nasdaq value and pushed the index into correction territory.
- On Thursday, the Nasdaq Composite fell 5.5%, wiping out an estimated $2.5 trillion in market value as a tech stock rout swept Wall Street following Tuesday's midterm election results.
- Weak earnings reports in the AI-related sector and Democrats' gains in Tuesday's midterm elections, which included winning many governorships, triggered the selloff, according to the Wall Street Journal.
- The "Magnificent Seven" collectively lost around $1 trillion in value, while Nvidia dropped 9% and Advanced Micro slumped 17%, marking the index's largest single-day percentage drop since April 2025's "Liberation Day."
- JonesTrading chief market strategist Michael O'Rourke told Reuters the "slowdown of the data center buildout is the real key theme," while Congress holds sweeping investigative powers over AI firms.
- Granite Wealth Management managing director Bruce Zaro told Reuters many data center projects face a "difficult road" to obtain permits, as critics question the industry's $10 trillion infrastructure plans.
16 Articles
16 Articles
The U.S. tech stock market faced a major sell-off after the Democratic Party won the midterm elections and pushed for measures to control AI development and the construction of data centers.
Wall Street bloodbath: $2.5 trillion wiped out as Nasdaq suffers worst crash in 18 months
Wall Street faced a dramatic selloff with technology stocks plummeting due to growing concerns about artificial intelligence spending. Investors reevaluated popular AI-related trades after midterm election results suggested potential tougher scrutiny in the industry. The Nasdaq dropped more than 5%, marking its worst session in 18 months and entering correction territory. The selloff spread to Asian markets, leading to declines in Japan's Nikkei…
Shares of AI companies saw a significant decline in the US stock market. The market value of the Nasdaq-100's largest companies fell by $2.5 trillion in a single day.
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