Investors wipe USD2.5trn off Nasdaq as blue tsunami prompts AI fears

Nasdaq’s technology-heavy markets suffered a sharp retreat on Thursday, with the Nasdaq Composite losing 5.5 percent after US midterm results raised concerns about tighter scrutiny of artificial intelligence infrastructure. Business Recorder reported that the Nasdaq 100 shed 6.4 percent, removing USD2.5 trillion in market value, while the Philadelphia Semiconductor index fell 12 percent.

Investors focused on the possibility that political opposition, permitting hurdles and pressure on electricity and water systems could slow data center construction. The Nasdaq Composite has fallen nearly 12 percent from its October 6 record, while chipmakers and data center-linked firms faced steep losses; analysts also highlighted financing strains and questions about returns on AI spending. The selloff extended to utilities and equipment suppliers, indicating that concerns reached beyond technology companies.