Business ·
Nasdaq falls into correction as AI regulation concerns hit markets
The Nasdaq composite dropped 5.5% on Thursday, its sharpest daily decline in 18 months, as election results heightened concerns about tougher oversight of artificial intelligence. More than $2tn was wiped from its value.
The Nasdaq composite suffered its worst trading day in 18 months on Thursday, falling 5.5% as losses spread across Wall Street. The decline left the index in correction territory, meaning it had retreated more than 10% from its recent record high.
More than $2tn was erased from the Nasdaq’s value during the sell-off. The scale of the decline underscored how quickly sentiment shifted amid widespread losses across US markets.
Investor unease centred on the prospect of stronger regulation of the artificial intelligence industry following the midterm election results. Growing indications of a tougher regulatory approach weighed on the sector after the vote.
Concerns about possible restrictions on AI datacenters also rippled across stock exchanges. Those worries added to pressure on a market that had recently reached a record high before reversing course.
Source: The Guardian
Written with AI from the linked source