US stocks lose $2.5 trillion as AI investment fears trigger Wall Street sell-off
Investors reversed earlier technology stock gains as concerns over potential policy changes raised questions about future artificial intelligence infrastructure spending
US stocks suffered a significant loss of approximately USD 2.5 trillion on Thursday due to fears surrounding a potential slowdown in artificial intelligence-related investments. The dramatic decline in technology stocks marked the end of a post-election rally, as concerns arose about the impact of Democratic gains in the midterm elections on the expansion of data centers and artificial intelligence infrastructure development.
The Nasdaq Composite experienced its worst single-day fall since April 2025, closing at 24,315.00, a 5.52% decrease. The S&P 500 and Dow Jones Industrial Average also saw their worst trading sessions since April 2025, with declines of 4.36% and 3.44%, respectively. The sharp losses erased gains made during the previous day's rally, which saw the Dow Jones surge more than 1,500 points.
Investors turned cautious about technology companies after speculation that Democratic control of Congress could lead to restrictions on data center expansion, potentially slowing artificial intelligence infrastructure development. Companies involved in semiconductors and data center infrastructure, such as Broadcom, Nvidia, and Oracle, faced heavy selling, with their shares dropping between 7% and 10%.
Market analysts described the recent volatility as a knee-jerk reaction rather than a clear indication of how technology stocks would perform under Democratic control of Congress.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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