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Nasdaq Suffers Worst Day in 19 Months as AI Spending Fears Hit Tech Shares
Nasdaq slumps 5.5% in its worst day in 19 months as AI spending fears hit tech shares.
Key points
- The Nasdaq composite fell 5.5% on Thursday and was more than 10% below its recent record high.
- Over $2tn was shaved off the Nasdaq's value by the end of trading Thursday.
- Japan's Nikkei 225 sank 6% and South Korea's Kospi tumbled more than 8% in early trading on Friday.
Why it matters. Analysts pointed to expectations that Democratic governors will clamp down on new datacentre rollouts, which could restrain AI-related spending and weigh on tech stocks.
The Nasdaq composite slumped 5.5% on Thursday, its worst day in 19 months, as Wall Street losses deepened on fears of tougher AI regulation after the midterm election results. The index entered correction territory, more than 10% below its recent record high, with over $2tn wiped off its value by the close. Memory maker SanDisk fell 22% and Western Digital dropped 17%, while the VIX jumped 61%. Nikkei 225 sank 6% and Kospi tumbled more than 8% in early trading in Asia on Friday.
Latest updates
Nasdaq Suffers Worst Day in 19 Months as AI Spending Fears Hit Tech Shares
The Nasdaq Share Index recorded its worst session in 19 months on November 5. Nearly $2 trillion was shaved off the index's value. Investors bet on a slowdown in artificial intelligence spending, with worries about curbs on AI data centres rippling across global bourses. The sell-off followed the Democrats' election triumph in the US midterms. Markets in Asia and Europe later came under pressure.
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