Nasdaq 100 loses $2.3 trillion in record one-day AI stock sell-off
Record one-day loss for the Nasdaq 100
The Nasdaq 100 erased $2.3 trillion in market value in one day. Market value means the total value of a company's shares. The source described it as the largest one-day loss in history for the index.
US-listed equities lost more than $3.2 trillion in total. The sell-off in AI stocks started on October 7 and sped up yesterday.
The VIX volatility index, which measures expected market swings, rose more than 70% in a single session. Trading was halted by circuit breakers in South Korea. Circuit breakers are automatic pauses in trading during a sharp fall.
Key numbers from the sell-off
- Nasdaq 100 loss: $2.3 trillion in one day.
- US-listed equities loss: more than $3.2 trillion.
- VIX rise: more than 70% in one session.
- South Korea KOSPI: down 6%, at a nine-month low.
- Japan Nikkei: down 6%, first close below 60,000 since May.
- US jobs headline: 165,000 job openings.
Asian markets fall and US indices rebound slightly
South Korea's KOSPI finished down 6%. It closed at a nine-month low. Japan's Nikkei also fell 6%. It closed below 60,000 for the first time since May.
US indices rebounded slightly this morning. The source reported the Nasdaq 100 up about 1.5% to 1.6% at different points, while the Dow was flat. It had not returned to Wednesday levels at the time of writing.
The source linked the partial rebound in part to a better-than-expected headline about 165,000 US job openings.
Saxo Markets said Asian equities remain particularly vulnerable to continued falls in AI sentiment. It said yesterday's decline casts doubt over future US infrastructure demand. That could affect purchase orders for companies listed in Japan and South Korea, the source reported.
Microsoft and Oracle AI spending updates
Microsoft said it plans to reprioritize AI spending. It will deprioritize neocloud computational infrastructure providers, including IREN, Nscale, and Nebius, the source reported.
Oracle dipped more than 5% in early trading. It remained 1.7% lower after Microsoft said it intends to wind down major AI computing contracts with Oracle.
Brookfield Asset Management CEO Connor Teskey said a social license to operate is critical for AI infrastructure projects in the US. He said Brookfield plans to focus on places where there is community support.
Anthropic IPO valuation expectations drop
Anthropic had hoped to list at a valuation north of $1.5 trillion. The Wall Street Journal and Bloomberg reported that expectations fell as low as $1.1 trillion after the sell-off. That is a decline of roughly 25% in one day, according to the source.
The source also noted a pre-IPO contract for speculating on Anthropic's valuation on Binance, a crypto exchange where users trade digital assets, traded to the lowest part of its range.
Views from analysts and firms
These are reported opinions, not confirmed facts. Yorkville Ives senior managing director Dan Ives called morning pricing a golden buying opportunity. He said investors mistakenly believed a new Democratic Congress would end the AI buildout in the US. He said the AI revolution will continue, just at a slower rate.
Stifel analyst Brian Chin called today's rebound a volatility whipsaw. He was unconvinced that AI data center uncertainty is resolved, the source reported.
Schwab said the 165,000 jobs headline was relatively strong. It said the report may help calm AI fears and supports the case that the economy remains strong.
eToro's Lale Akoner said the returns investors demand from AI investments can backfire. She said that reinforces the case for diversifying exposure beyond technology.
Yardeni Research called Thursday's sell-off overdone in a pre-market note. Lombard Odier's Florian Ielpo said the strong jobs report seals the case for a December rate hike, according to the source.
What is confirmed and what remains unclear
Confirmed from the source are the reported market losses, the Asian market falls, the slight US rebound, the Microsoft and Oracle updates, and the reported drop in Anthropic valuation expectations.
Many commentators blamed politics for the sell-off, the source reported. It said a Democratic US midterm election sweep spooked investors about data center approvals and AI oversight changes. The source said there were many causes. It did not confirm a single cause.
The source also reported that Donald Trump blamed Democratic voters for the collapse after writing two days earlier that 401(k)s are through the roof. That is a reported statement, not a confirmed cause of the market move.
Why the sell-off matters for AI stocks
The source links the fall to uncertainty about AI data centers and oversight. It reports views that this uncertainty remains unresolved, even after the partial rebound.
It also reports concern that lower future US infrastructure demand could affect orders for listed companies in Japan and South Korea.
Where this report comes from
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.
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