Nasdaq 100 loses $2.3 trillion in record sell-off as AI stocks plunge

The Nasdaq 100 lost a record $2.3 trillion in market value yesterday, marking its biggest notional decline ever, as Wall Street experienced a historic crash.

The sell-off in AI stocks, which began on October 7, intensified yesterday, with the VIX volatility index jumping over 70% in one trading session.

US-listed stocks lost more than $3.2 trillion in value, and circuit breakers halted all trading in South Korea, where AI heavyweights Samsung and SK Hynix are based.

While multiple factors contributed, many analysts pointed to politics: a Democratic sweep in the US midterm elections raised concerns about data center approvals and potential AI regulatory changes.

Major indices have recovered somewhat this morning, partly after a better-than-expected report on US job openings, which came in at 165,000.

Donald Trump, who posted “Your 401(k)s are through the roof” two days ago, shifted his stance after yesterday’s market close, blaming Democratic voters for the collapse. “You only have yourselves to blame,” he wrote.

Live updates on this week’s tech stock collapse

By the time of writing, the Nasdaq 100 had gained 1.5%, while the Dow Jones Industrial Average was flat.

Asian markets performed poorly. South Korea's KOSPI ended 6% lower, hitting a nine-month low. Japan's Nikkei also fell 6%, recording its first close below 60,000 since May.