AI Rout Wipes $2.3 Trillion Off Nasdaq as Global Markets Plunge

AI Rout Wipes $2.3 Trillion Off Nasdaq as Global Markets Plunge

Global stocks tumbled Thursday as investors fled artificial intelligence shares, pushing the Nasdaq into correction territory and wiping out massive market value.

· 2 min read ·
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A violent sell-off in artificial intelligence stocks swept through global markets Thursday, pushing major indexes into correction and bear territory as investors questioned whether the massive run-up in AI-related shares could be justified.

The Nasdaq 100 shed $2.3 trillion in value as the AI trade reversed sharply, with the technology-heavy index entering its third correction of 2025 — defined as a decline of at least 10% from a recent high [280494][277721]. The Dow Jones Industrial Average plunged more than 1,800 points, or 3.4%, while the Nasdaq Composite fell 5.5% [280356][280381].

The "Magnificent 7" technology companies — including Apple, Microsoft, and Nvidia — lost a combined $1 trillion in market value in a single day, one of the largest single-day losses for the group [280344]. The S&P 500 posted its steepest one-day drop in more than a year [279878].

The carnage spread rapidly across Asia. Japan's Nikkei 225 fell into a bear market — a decline of 20% or more from its recent high — with SoftBank Group shares sliding 11% due to its large stakes in AI-related businesses [280469]. Foreign investors withdrew record amounts from Taiwanese stocks, pushing the benchmark index closer to a technical correction [276802].

European markets opened sharply lower Friday, with the FTSE 100 facing heavy losses as the selloff erased gains for the week [280489][280496].

Investors moved money into safer assets, driving bond prices higher as they retreated from the AI trade that had powered market gains [280399][280500]. Analysts say the speed of the decline caught many off guard, reflecting growing unease about how much of the market's recent success rested on a single theme.

India stood out as a rare bright spot amid the regional turmoil, with its markets holding steadier while others fell [280494].

Sources

Wall Street Bleeds: Nasdaq Enters Correction as Japan's Nikkei Falls into Bear Market #280342Tech Wreck: Nasdaq Enters Correction as Dow Plunges 1,800 Points #280356AI Selloff: Japan's Nikkei Enters Bear Market, SoftBank Slides 11% #280469Tech Wreck: S&P 500 Posts Worst Day in Over a Year #279878AI Crash Wipes $2.3 Trillion — Asia Hit Hard #280494AI Panic Wipes Billions Off UK Stocks #280489AI Fears Trigger Global Selloff, Erasing European Stock Gains #280496Tech Wreck Deepens: Nasdaq-100 Enters Third Correction of 2025 as AI Fears Grow #277721Tech Giants Lose $1 Trillion in One Day #280344AI Stocks Crash: Foreign Investors Pull Record Money from Taiwan #276802Nasdaq Plunges 5.5% as Investors Abandon AI Trade After Election #280381AI Panic Hits Stocks #280399AI Rout Wipes Out Stocks — Investors Flee Tech #280500

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