AI Stocks Crash: Nasdaq Loses $2.5 Trillion in Historic Selloff
Global technology markets suffered one of their most dramatic single-day collapses in recent history on Thursday, November 5. The Nasdaq Composite fell 5.52%, erasing an estimated $2.5 trillion in market value from the Nasdaq 100 and nearly $3 trillion from S&P 500 companies.
The selloff was driven by fears of sweeping AI regulation following the US midterm elections. The Democratic Party’s midterm sweep, which gave it control of both houses of Congress and several key governorships, raised concerns about tighter oversight of AI data center construction and infrastructure spending.
Those concerns were compounded by the results of state ballot measures: 40 out of 41 proposals targeting data center restrictions passed across 10 US states.
Major technology and chip companies were among the hardest hit:
- Nvidia lost more than 9% of its value.
- The broader chip index fell approximately 12%.
- Microsoft, Amazon, and Google also declined amid their substantial investments in AI infrastructure.
According to Bloomberg, the Nasdaq 100 recorded its largest single-day loss in market value ever.
By Friday morning, futures had stabilized somewhat. Jefferies equity strategist Jane Gibbons described Thursday’s rout as “reactionary, not a fundamental reset”—a collision of concerns about AI spending, policy uncertainty, and inflation.
Analysts say the direction of Democratic AI policy in the coming months will be a key variable for technology markets heading into 2027.
Source: Reuters via Yahoo Finance – Nasdaq Futures Rise After Steep AI Selloff