Nasdaq Suffers Worst Day in 19 Months as AI Doubts Weigh on Tech

The tech-heavy Nasdaq recorded its worst trading day in 19 months as investors moved against artificial intelligence stocks, wiping nearly $2tn from the index's value. Across Wall Street, roughly $3.2tn in market value was shed, with the sell-off rippling across global bourses.

The retreat reflected mounting worries over potential curbs to AI datacenter buildouts, which have underpinned much of the market's recent gains. Investors betting on an AI slowdown drove the decline, with the Nasdaq bearing the brunt of the pressure given its heavy weighting toward technology names.

The scale of the move marks a sharp reversal for a market that has been powered by enthusiasm for AI infrastructure and the companies supplying it. The near-$2tn hit to the Nasdaq alone underscores how concentrated the market's exposure has become to the AI trade, and how quickly sentiment can shift when the outlook for datacenter spending comes into question.

The sell-off was not confined to the US, with the concerns rippling across bourses internationally as investors reassessed positions tied to the AI theme. The breadth of the move suggests the unease is not limited to a single sector or region but reflects a broader recalibration of expectations around the pace of AI investment.

For investors, the session is a reminder of the risks embedded in a market whose leadership has been narrow and heavily dependent on the AI narrative. With nearly $2tn erased from the Nasdaq in a single day and $3.2tn gone across Wall Street, the question now is whether the pullback represents a temporary bout of profit-taking or the start of a more durable reassessment of AI-related valuations.