Investors wipe $2.5 trillion off Nasdaq as blue tsunami prompts AI fears
QQQ•The Nasdaq 100 fell 6.4%, erasing $2.5 trillion in market value, as fears of increased scrutiny and delays to data center construction fueled an AI-related selloff. The Nasdaq Composite dropped 5.5% and entered correction territory, nearly 12% below its October 6 record close.
1. Nasdaq selloff deepens
The tech-led Nasdaq recorded its deepest one-day drop since April 2025 after Democrats won big in US midterm elections, prompting fears that AI infrastructure expansion could face more scrutiny. The Nasdaq Composite fell 5.5%, while the Nasdaq 100 declined 6.4%, erasing $2.5 trillion in market value.
2. Chip and AI stocks slide
The Philadelphia Semiconductor index fell 12% to its lowest level in more than six months. Nvidia dropped 9%, Advanced Micro Devices fell 17%, Nebius slid 15% and CoreWeave lost 10%; CoreWeave’s five-year credit default swap spreads widened to a record 1,267.9 basis points.
3. Data center concerns
Investors weighed the possibility of delays to data center projects amid local opposition and concerns about power and water systems. UBS analysts estimated that about 30% of expected US data center capacity additions in 2028 could be at risk from potential construction pauses. Microsoft reportedly tightened oversight of some data center projects from Nebius, IREN and Nscale.
