Nasdaq falls to 18-month low on AI regulation fears
Nasdaq fell to an 18-month low on Thursday as investors worried about tighter AI regulation.
The tech-heavy Nasdaq composite dropped into correction territory, more than 10% below its recent high, after Democrats won gubernatorial races in this week's midterm elections. Investors worry Democratic governors will restrict new datacentre expansion, a key driver of AI spending.
Chip stocks led the selloff. Memory maker SanDisk fell 19% and hard drive maker Western Digital dropped 16.5%.
Nvidia, central to the AI boom, fell 6.7%. The Dow Jones fell more than 1,000 points.
Wall Street's volatility gauge, the VIX, jumped 40% to its highest level since the early Iran war. Analysts warned of a potential momentum unwind as tech stocks face sustained pressure.
- 5%, worst day in 18 months
- Nasdaq fall
- 19%
- SanDisk decline
- 16.5%
- Western Digital decline
- 6.7%
- Nvidia decline
Why it mattersMarket crashes can shift investor sentiment and ripple through global financial markets and investment portfolios.
AustraliaAustralian superannuation funds and investors with US tech holdings face portfolio losses; the correction may influence local investment decisions and retirement savings.
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