Nasdaq posts biggest daily drop in 19 months on fears of AI regulations
Democratic victories on Tuesday raised concerns that tighter regulations could slow AI infrastructure expansion, which has helped drive stocks to record highs this year, amid growing opposition to data centres.
The Nasdaq Composite experienced its most significant daily decline in 19 months, plummeting more than 10% from its October 6 record-high close. This sharp drop confirmed a technical correction, reflecting fears of stricter AI regulations following Democrats' victory in the US Congress elections. Nvidia saw its stock price plummet by over 9%, while the Philadelphia Semiconductor SE index dropped by more than 12%.
The selloff resulted in a loss of $3 trillion in market value from S&P 500 companies. Melissa Brown, global head of investment decision research at SimCorp, noted that while it is unlikely these new members of Congress or governors will halt AI infrastructure development entirely, any slowdown could raise concerns due to the crucial role AI plays in the rapid construction of supporting infrastructure.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Investors wipe US$2.5 trillion off Nasdaq as blue tsunami prompts AI fears nst.com.my
- Nasdaq posts biggest daily drop in 19 months on fears of AI regulations freemalaysiatoday.com
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