AI slowdown fears trigger $1 trillion market wipeout on Thursday

A sharp sell‑off on Thursday erased more than $1 trillion of market value as worries over a slowdown in artificial‑intelligence expansion rattled tech stocks and the wider market.

Market Moves

The Nasdaq Composite, which is heavily weighted toward technology firms, dropped by over five percent, pushing the index into correction territory. The small‑cap Russell 2000 also slipped into correction as its value fell sharply. The Dow Jones Industrial Average retreated by more than 1,800 points, a decline of over three percent. The broader S&P 500 pulled back by more than four percent. These moves erased the gains recorded in Wednesday’s post‑election rally and added further losses.

Context

When investor confidence in AI spending wanes, the tech‑focused Nasdaq typically leads the decline, and because many large companies have AI ties, the broader market often follows the same downward trend.