US stocks: Nasdaq posts biggest daily drop in 19 months on fears of AI regulations
The index fell more than 10% from its Oct 6 record-high close, confirming a technical correction
The Nasdaq Composite experienced its largest daily decline since President Donald Trump's "Liberation Day" tariff announcement in April 2025, marking a significant 10% drop from its October 6 record-high close. This technical correction confirmed the index's downward trajectory, fueled by concerns over tighter AI regulations following the Democratic win of control over the US Congress.
Investors growing apprehensive about potential slowdowns in AI infrastructure development due to newly elected lawmakers and governors aiming to curb the rapid expansion of data centers. Chipmakers, key providers of components for AI data centers, were among the steepest decliners, while other large-cap tech stocks, including Meta Platforms, Amazon.com, and Alphabet, also suffered losses.
Major players like Qualcomm, GE Vernova, and Constellation Energy also saw their stocks tumble. The S&P 500 fell 4.36% to 7,353.73 points, and the Dow Jones Industrial Average dropped 3.44% to 51,523.06 points. Despite the market volatility, both the S&P 500 and Nasdaq remain up 7.4% and 4.6% respectively in 2026, with heavy trading volume on US exchanges reaching 26.9 billion shares traded.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
- Nasdaq posts biggest daily drop in 19 months on fears of AI regulations freemalaysiatoday.com
- US stocks: Nasdaq posts biggest daily drop in 19 months on fears of AI regulations businesstimes.com.sg
- Nasdaq posts biggest daily drop in 19 months on fears of AI regulations straitstimes.com
