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Nasdaq 100 Drops 6.3%, Erasing $2.3 Trillion as AI Worries Hit Tech Shares
Nasdaq 100 falls 6.3%, erasing $2.3 trillion as AI worries hit tech shares.
Key points
- The Nasdaq 100 dropped 6.3%, erasing $2.3 trillion in market value on Thursday.
- The S&P 500 plunged 4.4%, erasing $2.8 trillion from the index's value.
- South Korea's Kospi index dipped more than 8%, triggering a temporary marketwide trading halt on Friday.
Why it matters. Hundreds of candidates who pledged to rein in AI data centers have been elected, raising the prospect of increased regulation on an industry that is the primary driver of U.S. economic growth.
Stocks plunged Thursday as anti-AI candidates won races from Maine to Alaska, deepening worries about the AI boom's durability. The tech-focused Nasdaq 100 fell 6.3%, erasing $2.3 trillion in market value, while the S&P 500 dropped 4.4%, wiping out $2.8 trillion. Both indexes posted their worst day since April 2025, when President Donald Trump's global tariffs rocked markets. Trump blamed Democrats on Truth Social, writing that 401(k)s had dropped after the election results.
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Nasdaq 100 Drops 6.3%, Erasing $2.3 Trillion as AI Worries Hit Tech Shares
Technology shares plunged on Thursday, with the tech-focused Nasdaq 100 index dropping 6.3%. The decline erased $2.3 trillion in market value. Investors pointed to a wave of midterm victories by anti-AI candidates from Maine to Alaska as a factor. The results added to existing concerns about the durability of the artificial intelligence boom. Investors stepped back to evaluate new risks to billions of dollars in AI-related investments.