AI investment fears erase $2.5 trillion from US stock markets

Concerns about a potential slowdown in artificial intelligence-related investments caused a significant drop in US stock market value on Thursday, wiping out approximately $2.5 trillion, ANI reported.

The sharp sell-off primarily affected technology stocks and erased the gains from the post-election rally on Wall Street, according to CNN.

Fears that Democratic Party gains in the US midterm elections could lead to restrictions on data center expansion and slow AI infrastructure development contributed to the decline, ANI noted.

The Nasdaq Composite experienced its worst single-day fall since April 2025, dropping 5.52% to close at 24,315.00, entering correction territory by falling more than 10% below its recent record.

Broader market indices also suffered, with the S&P 500 declining 4.36% to 7,353.73 and the Dow Jones Industrial Average falling 3.44%, or 1,833.06 points, to close at 51,523.06, ANI reported.