U.S. Stock Market Suffers Sharp Decline as $2.5 Trillion Wiped Out in a Single Day

The U.S. stock market recorded a steep decline amid a sell-off in technology shares, causing the total market value of the Nasdaq 100 Index to fall by $2.5 trillion. According to Reuters, the Nasdaq Composite fell by more than 5.5%, marking its biggest one-day decline since President Donald Trump announced his so-called “Liberation Day” tariffs in April 2025. Following the decline, the index stood nearly 12% below its record high reached on October 6, officially entering correction territory. A market decline of 10% or more from a recent peak is generally defined as a correction.

According to the report, investors are concerned that the Democrats’ major gains in the U.S. midterm elections could affect the construction of data centres and the expansion of AI infrastructure. These concerns triggered a sell-off in AI-related stocks for a second consecutive day. Chipmakers and companies providing computing services to data centres suffered the steepest losses. The Philadelphia Semiconductor Index plunged 12%, reaching its lowest level in more than six months. Nvidia shares fell 9%, while Advanced Micro Devices (AMD) shares dropped 17%.

Meanwhile, U.S. President Donald Trump blamed the Democrats for the sharp decline on Wall Street following the midterm elections. He said the election results had contributed to one of the worst days in stock market history. He also warned that the market downturn had affected Americans’ retirement savings. In several posts on his social media platform, Truth Social, Trump expressed disappointment over the market situation. In one post, he wrote that the stock market had crashed because the Democrats had achieved a major victory on Tuesday, adding that it was unfortunate and that they were responsible. Shares of Amazon and Alphabet each fell 2.2%, while the Nasdaq 100, which comprises major companies, dropped 6.4%, wiping out $2.5 trillion in its total market value.

One of the major factors behind the market decline is believed to be the possibility of local opposition to the construction of data centers. Analysts say these facilities are placing increasing pressure on electricity grids and water resources, making it more difficult to secure approval for such projects in various areas. Analysts at Swiss bank UBS estimate that around 30% of the new data center capacity expected to be built in the United States by 2028 could be affected by potential decisions to halt construction projects. The report also notes growing questions about the returns on heavy investment in AI technology. Investors fear that if companies fail to generate the expected financial benefits despite spending billions of dollars in the sector, their valuations and investment decisions could be affected. The U.S. VIX index, which measures expectations of stock market volatility, also recorded its largest increase since December 2024.