Wall Street took a massive hit on Thursday as fears of a slowdown in artificial intelligence investments wiped out roughly $2.5 trillion in US market value. The technology-heavy Nasdaq Composite plunged 5.52 per cent to close at 24,315.00, while the S&P 500 fell 4.36 per cent. Semiconductor stocks bore the brunt of the selloff, with Broadcom dropping 10 per cent, Nvidia declining 9 per cent, and AMD losing approximately 17 per cent. The sell-off erased Wall Street's post-election rally and marked the worst trading session for broader indices since April 2025.
Key Takeaways
- Wall Street lost $2.5 trillion as AI investment fears triggered a sharp tech selloff
- Nasdaq Composite fell 5.52 per cent while S&P 500 dropped 4.36 per cent
- Nvidia fell 9 per cent and AMD lost approximately 17 per cent in the selloff
- Democratic midterm election gains raised fears of tighter AI regulation and data centre restrictions
- IREN blames Microsoft for delaying its $9.7 billion AI data center project in Texas
- University of Nebraska adopts enterprise ChatGPT license with mandatory training for faculty and staff
- USDA deploys AI tool to detect errors in crop production data after recent corn data mistakes
- Only 16% of US consumers want AI managing their money directly, down from 20% a year ago
- Palantir has been collecting corporate files and emails to sell for AI training purposes
- AI security summit underway in Astana, Kazakhstan as part of the Aqaba Process
Wall Street loses $2.5 trillion as AI investment fears hit tech stocks
Concerns over a possible slowdown in artificial intelligence investments wiped out around USD 2.5 trillion in US stock market value on Thursday. A sharp sell-off in technology stocks erased Wall Street's post-election rally. The technology-heavy Nasdaq Composite fell 5.52 per cent to close at 24,315.00. Semiconductor companies and data centre infrastructure businesses witnessed heavy selling. Broadcom shares fell 10 per cent, Nvidia declined 9 per cent, and Oracle dropped almost 7 per cent.
AI investment fears wipe out $2.5 trillion from US markets
Concerns over a possible slowdown in artificial intelligence-related investments wiped out around USD 2.5 trillion in US stock market value on Thursday. A sharp sell-off in technology stocks erased Wall Street's post-election rally. The decline also dragged down broader market indices, with the S&P 500 and Dow Jones Industrial Average recording their worst trading sessions since April 2025.
Wall Street plunges as AI fears rattle investors
US stocks fell sharply amid fears of tighter AI regulation after the Democrats' midterm election victory. The S&P 500 tumbled 4.4 per cent and the Nasdaq plunged 5.5 per cent. Approximately US$3 trillion was wiped from the value of S&P 500 companies. Semiconductor stocks suffered their second-biggest daily fall on record, with AMD and Micron among those losing approximately 17 per cent. All 11 sectors of the S&P 500 finished lower.
AI investment fears wipe out $2.5 trillion from US markets
Concerns over a possible slowdown in artificial intelligence-related investments wiped out around USD 2.5 trillion in US stock market value on Thursday. The sell-off came amid fears that Democratic gains in the US midterm elections could lead to restrictions on data centre expansion. The Nasdaq plunged 5.52 per cent to close at 24,315.00, the S&P 500 declined 4.36 per cent to 7,353.73, and the Dow dropped 1,833.06 points to 51,523.06. Broadcom shares fell 10 per cent, Nvidia declined 9 per cent, and Oracle dropped almost 7 per cent.
University of Nebraska announces new AI guidelines
University of Nebraska System President Jeffrey P. Gold outlined new guidelines for the responsible use of AI. The NU System obtained an enterprise license to ChatGPT for all faculty and staff. Employees are encouraged to take training and move to the enterprise version of the tool. A new NU AI Governance Group will determine which AI tools are acceptable for routine work and manage the AI exception request process. Faculty retain authority over AI use in teaching and research.
NU sets rules for AI use by faculty and staff
The University of Nebraska created new rules for using AI across the university. Faculty and staff must use the university's ChatGPT license and complete training before accessing it. They must also verify all AI outputs for accuracy. A new AI Governance Group will help manage the rules. Employees must switch to the university license by the end of 2026.
IREN blames Microsoft for delay to Texas AI center
IREN says networking changes requested by Microsoft have delayed its $9.7 billion AI project in Texas. The data center company shared the delay information in a recent report. The project is one of the largest AI investments in the state. IREN continues to work on the project despite the setback.
Consumers want AI money advice but not full control
Many US consumers use generative AI for money management but do not want it to take full control. Four in ten say AI has mostly replaced their old approach. Only 16% would let AI manage their money directly, down from 20% a year earlier. Even power users only want AI to take a hands-on role 41% of the time. Banks face new competition from AI platforms.
AI job boom drives training rush in China
High-paying AI jobs are pushing Chinese professionals into training programs. The AI training industry in China is expected to reach 32 billion yuan this year. Jiangsu Chuanzhiboke Education Technology turned a profit of 77.7 million yuan in the first three quarters of 2026. The company had lost 8.5 million yuan the year before. Training providers are benefiting from the growing demand.
AI companies seek corporate files and emails for training
AI companies and data brokers are collecting internal corporate files and emails to train AI models. Palantir has been collecting company data for years and selling it back. Companies are worried about sharing sensitive or proprietary information. Metadata like who created files and when is also being collected. Once data is shared it can be very hard to remove.
Kansas board votes on AI policy and recess rules
The Kansas State Board of Education will vote on a new draft policy regarding artificial intelligence and student technology use. Education Commissioner Jake Steel will present the plan, which covers digital citizenship, privacy, and technology expectations for schools. During the same meeting, officials will also discuss guidance for elementary school recess policies. The recess policy is expected to be voted on during the December meeting instead.
USDA launches AI tool to fix crop data errors
The US Department of Agriculture will use a new artificial intelligence tool to check its monthly crop production data next week. This move comes after recent errors in corn data damaged trust among farmers and traders. The tool will act as an extra check to find anomalies that human staff might miss during normal validation. Officials say the AI will not replace existing processes but will help restore confidence in the agency's reports.
Slovak scientist trains AI for nuclear plant with pressure cooker
A Slovak scientist is using an unconventional method to train artificial intelligence for a nuclear power plant. Instead of standard computer simulations, he tested the AI system using a pressure cooker to understand safety dynamics. This unique approach aims to improve how the AI handles critical safety scenarios in nuclear environments. The project highlights creative ways researchers are solving complex engineering challenges.
Leaders gather in Astana for AI security summit
A summit focused on artificial intelligence security is currently taking place in Astana, Kazakhstan. The event is part of the Aqaba Process, an international initiative started by King Abdullah II of Jordan in 2015 to fight terrorism. Leaders from Kazakhstan, Jordan, Tajikistan, Turkmenistan, Uzbekistan, Azerbaijan, and Kyrgyzstan are attending the meeting. Officials plan to share ideas on security threats and coordinate practical responses to protect against AI risks.
Sources
- Wall Street loses $2.5 trillion as AI investment fears hit tech stocks
- AI investment fears wipe out $2.5 trillion from US markets
- Wall Street plunges as AI fears rattle investors
- AI investment fears wipe out $2.5 trillion from US markets
- A Message from President Gold on New AI Guidelines
- NU sets expectations on AI use for faculty, staff
- IREN blames Microsoft change for delay to Texas AI center
- The Money Prompt: Consumers Want Advice Without Giving Up Control
- Charts of the Day: AI Roles Fuel Training Rush in China
- AI Companies Really, Really Want to Buy Your Work Files and Emails
- Kansas Board of Education set to vote on artificial intelligence policy, discuss elementary recess policies
- USDA to launch AI tool to check crop production data after errors
- Slovak scientist took an unconventional approach to training AI for a nuclear power plant: he tested a pressure cooker
- Astana hosts Aqaba Process summit on AI security
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