The Nasdaq Composite entered correction territory as a massive technology sell-off erased $2.5 trillion in market value.
A Democratic sweep in the midterm elections triggered investor anxiety over increased regulation. Markets also signaled concerns regarding a potential slowdown in AI-related data center construction.
The Magnificent Seven tech giants collectively lost approximately $1 trillion in value. The rout impacted nearly every tech subsector, including chipmakers, software, and cloud-computing providers.
Investors are reassessing high AI valuations against massive capital expenditures and paths to profitability.