THE AI BUBBLE BURST — NASDAQ DOWN 5.5% IN A DAY

Tech stocks suffered their sharpest sell-off since the Covid-era turmoil on Thursday, wiping more than $3 trillion from US share values as investors decided the midterm results would slow the AI data-center boom.

The Nasdaq fell more than 1,340 points, 5.2 percent, in midday trading — its biggest daily drop since the April 2025 tariff announcement — while the Philadelphia Semiconductor index headed for its worst day since March 2020.

The reversal came a day after shares rallied on the Democrats retaking both chambers; voters also backed candidates and ballot measures restricting AI data-center construction, and Meta's president said building data centers in America would now become “harder.”