Nasdaq sinks 5.5% as Nvidia, Tesla and SpaceX lose hundreds of billions

what happened

US stocks posted their steepest selloff in more than a year on Thursday. The Nasdaq Composite dropped 5.52% to 24,315, its biggest one-day decline in 19 months and a technical correction after falling more than 10% from its October 6 record close. The S&P 500 lost 4.36% to 7,353.73, and the Dow Jones Industrial Average fell 3.44% to 51,523.06.

According to TradingView, Nvidia shares fell more than 9%, erasing about $440 billion in market value. Tesla and SpaceX together lost roughly $420 billion, and the Magnificent Seven group shed as much as $1 trillion. The Philadelphia Semiconductor Index plunged more than 12%, and Qualcomm fell 9.5% after its fourth-quarter smartphone chip sales missed expectations. Stocks tied to AI data centres dropped 10% to 14%.

why it matters

The main trigger was concern that Democrats, who won control of both chambers of Congress in the midterm elections, would tighten rules on AI and data centre construction. Investors also questioned whether huge spending on artificial intelligence will pay off. The pressure spread to Asia on Friday, with South Korea's KOSPI falling as much as 8.8% and triggering a circuit breaker, and Japan's Nikkei dropping more than 5%.

market impact

US tech and chip stocks: regulation worries and doubts about AI returns are pressuring shares.

• ▼Nasdaq Composite pressure down — tech selloff driven by fears of tighter AI regulation
• ▼Semiconductor stocks pressure down — doubts about spending on AI infrastructure and weaker chip demand
• ▼KOSPI and Nikkei pressure down — chip stock selling spreading to Asian markets

instruments