Wall Street bloodbath: $2.5 trillion wiped out as Nasdaq suffers worst crash in 18 months

On Thursday, Wall Street faced a catastrophic sell-off, resulting in a staggering $2.5 trillion in market value loss. The decline was driven by growing concerns over artificial intelligence (AI) spending and potential industry regulation. The Nasdaq plunged more than 5%, the Dow Jones Industrial Average dropped 1,833 points, and the S&P 500 recorded its steepest single-day fall in nearly a year. Asian markets also suffered, with Japan's Nikkei falling 6% and South Korea's Kospi tumbling over 8%.

Investors quickly reevaluated AI-related investments, as signs emerged that the sector could face stricter scrutiny following the US midterm elections. The decline was particularly steep for chipmakers and infrastructure suppliers, with Nvidia losing 9.3% of its value, SanDisk plummeting 22%, and Western Digital shedding 17%. Other major US companies also fell, with the Dow Jones Industrial Average losing 1,833 points and the S&P 500 declining 4.3% to 4.4% - its worst single-day performance since April 2025.

The market's reaction extended to other asset classes as well. Investors moved towards safer assets, driving demand for US government bonds, which pushed the yield on the 10-year Treasury note to its lowest level since mid-September. Wall Street's VIX, a gauge of market volatility, surged 61%, signaling heightened uncertainty.