Blue tsunami wipes out $2.5 trillion from Nasdaq as investors fret about AI trade
It was the second straight day of selling in AI stocks and the fifth decline of more than 500 points in the Nasdaq Composite since mid-October.
In a dramatic turn of events, the Democratic victory in Congressional elections sent U.S. stocks reeling on Thursday, with the tech-dominated Nasdaq experiencing its steepest one-day decline since April 2025. The index plummeted 5.5%, erasing $2.5 trillion in market value as investors grew apprehensive about heightened artificial intelligence regulation, particularly concerning data center development.
The market's plunge mirrored a two-day streak of selling in AI-related stocks and marked the fifth decline surpassing 500 points since mid-October. This recent downturn reflects growing skepticism surrounding the AI sector, which has been a major driver of market growth in recent times. The Democratic Party's sweeping electoral triumph has fueled concerns that tighter regulation could impede the expansion of AI infrastructure and hinder smaller firms' ability to secure funding, compounded by the effects of higher interest rates and more stringent financial conditions.
Written by urgent.news from Japan Times'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.
- Investors wipe US$2.5 trillion off Nasdaq as blue tsunami prompts AI fears businesstimes.com.sg
- 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
- Nasdaq posts biggest daily drop in 19 months on fears of AI regulations straitstimes.com
- Investors wipe $2.5 trillion off Nasdaq as Democrats win prompts AI fears thejakartapost.com
