Wall Street bloodbath: $2.5 trillion wiped out as Nasdaq suffers worst crash in 18 months
Wall Street saw its worst single-day crash in 18 months, with $2.5 trillion in market value erased amid fears of an AI bubble. The decline triggered a ripple effect across Asian markets, including significant drops in Japan and South Korea.
Why it matters
The massive selloff underscores the fragility of current market valuations tied to AI infrastructure and the potential for global economic contagion.
Wall Street suffered a massive selloff on Thursday (local time), wiping out a whopping $2.5 trillion in market value in a single day amid AI fears. The fall came a investors pulled back from technology stocks amid growing concerns over heavy artificial intelligence spending and the possibility of tighter industry regulation.The Nasdaq plunged more than 5% while the Dow Jones Industrial Average shed 1,833 points and the S&P 500 recorded its worst single-day fall since April 2025. The selloff also spread to Asian markets on Friday, with Japan's Nikkei sliding 6% and South Korea's Kospi tumbling more than 8% in early trade.The sharp decline came as investors reassessed some of the year's most popular AI-related trades. Growing signs that the artificial intelligence industry could face tougher scrutiny following the US midterm election results have raised concerns about the pace of investment in the sector.
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Wall Street Suffers Historic Selloff as Artificial Intelligence Stocks Plunge
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