Nasdaq posts biggest daily drop in 19 months on fears of AI regulations
SPY•The Nasdaq Composite fell 5.46%, its steepest one-day drop in 19 months, as worries about tighter AI regulation and slower data-center expansion weighed on technology stocks. The S&P 500 dropped 4.32% and the Dow fell 3.45%.
1. Nasdaq confirms correction
The Nasdaq Composite dropped 1,421.50 points, or 5.46%, to 24,315.02, its biggest daily decline since April 2025. The fall put the index more than 10% below its October 6 record close, confirming a technical correction.
2. AI infrastructure fears weigh
Chipmakers and other companies tied to AI data centers tumbled after Democratic election wins fueled concerns that tighter regulation could slow the infrastructure buildout. Nvidia, Meta Platforms, Amazon.com and Alphabet fell, as did data-center operators, AI-exposed utilities and equipment suppliers.
3. Major indexes fall
The S&P 500 lost 331.94 points, or 4.32%, to 7,353.65, while the Dow Jones Industrial Average fell 1,842.69 points, or 3.45%, to 51,513.43. Qualcomm also fell after missing Wall Street estimates for fourth-quarter smartphone chip sales. Investors were focused on October US payrolls data due Friday, while traders expected the Federal Reserve to raise rates next month.
