Wall Street Bloodbath Wipes Out $2.5 Trillion Amid AI Worries
· Business · Times of India, Bloomberg, Economic Times
Wall Street suffered a massive selloff on Thursday, wiping out $2.5 trillion in market value as investors retreated from technology stocks due to concerns over heavy AI spending and potential tighter regulation. The Nasdaq plummeted 5.5%, falling 10% below its recent high into correction territory, while the S&P 500 recorded its worst single‑day decline since April 2025. Tech giants Nvidia, SanDisk and Western Digital saw steep drops, with the Dow Jones falling 1,833 points. The VIX fear index surged 61% to its highest level since the early weeks of the Iran war. In a separate post, US President Donald Trump blamed the Democrats, citing the midterm election results as the cause of the market crash.
Why it matters
Investors holding U.S. equities, especially retirement accounts like 401(k)s, faced immediate losses, while sectors tied to AI hardware and semiconductor supply chains saw sharp share declines. The market fallout also directly impacted the wealth of major tech CEOs and institutional investors exposed to the affected stocks. The VIX surge signaled heightened volatility, raising the risk of further market instability and potentially affecting global capital flows into U.S. assets.
Read the original report — Times of India
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