CONNECT WITH US
Tech

Tech

Tech Rout Wipes Out $2.5 Trillion, With AI Investors Anticipating Heavier Scrutiny From Dems

Gizmodo - Tech logo

Published on

Add as a preferred source on Google
Tech Rout Wipes Out $2.5 Trillion, With AI Investors Anticipating Heavier Scrutiny From Dems

The Nasdaq Composite fell 5.5%, or an estimated $2.5 trillion in market value, on Thursday. The index descended into correction territory after weak earnings reports in the AI sector and a blue tsunami in the 2026 midterm elections on Tuesday set off a tech stock rout, the Wall Street Journal reported.

According to the Journal, shares of “Asian chip makers, Texas power producers, New Jersey compute providers, Silicon Valley software makers, contractors and data-center developers” all tumbled. Traders who had made highly leveraged bets, or wagered the pullback in AI stocks wouldn’t continue, got crushed. The paper reported the “Magnificent Seven” (Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla) collectively lost around $1 trillion in value, while the PHLX Semiconductor index had its worst day since the depths of the global coronavirus pandemic.

Every sector in the S&P 500 finished in the red in Thursday’s selloff, the Journal added. The biggest AI hyperscalers (Alphabet, Amazon, and Microsoft) dodged the worst blows on Thursday, but SpaceX took a hit of more than 9% along with fellow Elon Musk-controlled firm Tesla. That’s likely related to promises of investigations from Democrats, whom the Republican-allied billionaire spent nearly $500 million this cycle trying to keep out of office.

This is the biggest Nasdaq single-day percentage drop since April 2025’s “Liberation Day,” according to Reuters , and it is the largest ever in dollar terms, according to the Journal. “Liberation Day” was when President Donald Trump announced sweeping tariffs on goods from around the globe, triggering months of economic chaos.


Source link
Related Topics:Tech

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.