Nasdaq tumbles $3.6 trillion as AI regulation fears mount
Nasdaq fell 5.5% Thursday, erasing $3.6 trillion in shareholder wealth, as investors fear tighter data centre regulations.
Nasdaq fell 5.5% on Thursday. It was the biggest single-day loss of shareholder wealth measured in dollars.
The plunge erased $3.6 trillion from investors' portfolios. Chip maker Nvidia dropped 9 per cent.
Tesla fell 10 per cent. Tech giants in the 'Magnificent Seven' lost about $1.4 trillion combined.
Investors fled AI-related stocks. Fears of tighter rules on data centre construction drove the sell-off.
Republican electoral losses this week made regulation more likely. Data centres house the computers that power AI chat bots like ChatGPT and Claude.
Community groups have campaigned against new projects. They say the projects use too much water and electricity.
The Australian sharemarket fell 0.75 per cent. Brisbane-based data centre operator NextDC dropped 2 per cent.
- $3.6 trillion
- Shareholder wealth erased
- 5.5 per cent
- Nasdaq daily decline
- $1.4 trillion
- Magnificent Seven loss
- 9 per cent
- Nvidia stock fall
Why it mattersSignals major investor concern about AI's economic future; affects retirement funds and investment portfolios globally.
AustraliaAustralian data centre investments hit; NextDC and ASX fell; RBA may reconsider rate decisions if tech sector troubles deepen.
Corroborated byperthnow.com.au
