The US stock market suffered its sharpest daily fall in 19 months, wiping out an estimated $2.9 trillion in investor wealth as concerns over possible regulation of artificial-intelligence data centres triggered heavy selling in technology and semiconductor stocks, according to Aaj Tak Business citing a Reuters report.
The S&P 500 fell 3.77%, or about 290 points, while the Dow Jones Industrial Average dropped more than 3%, losing over 1,600 points. The Nasdaq Composite declined 5.52% to close at 24,315.00 points.
The sell-off was concentrated in companies connected to the AI infrastructure chain. Nvidia shares fell as much as 9%, while Micron Technology declined 17%. The report also said semiconductor exchange-traded funds fell by more than 70%, although the supplied report does not specify the basis or period for that ETF movement.
The Nasdaq Composite closed more than 10% below its record-high close on October 6, confirming a technical correction, the report said. Shares of Meta Platforms fell 4%, while Amazon.com and Alphabet declined 2.2% each. The fall followed a rise in major technology stocks on Wednesday.
The immediate concern for investors was the possibility that a Democratic victory in the US midterm elections could lead to new restrictions on the expansion of AI data centres and related infrastructure. Such restrictions could affect expectations for future earnings and capital expenditure by AI companies, according to the report. Chipmakers supplying components for AI data centres faced the strongest selling pressure.
The development also places renewed attention on the infrastructure requirements behind the AI boom. Data centres depend on large-scale computing equipment, semiconductor supply chains, power capacity and supporting physical infrastructure. The report links the market reaction specifically to possible restrictions on this expansion, but it does not identify any enacted regulation or provide details of a proposed policy.
Indian markets were expected to open lower on Friday. Gift Nifty was indicating a decline of 127 points, suggesting a negative opening for domestic equities. The indicator is a market signal rather than a confirmed prediction of where the Sensex or Nifty would close.
The report said experts cited by the coverage expected India’s decline to be smaller because Indian markets have lower exposure to AI companies than US markets. The Indian market had risen for six consecutive sessions before the expected fall, and its total market capitalisation had crossed $5 trillion.
The extent of any impact on Indian equities, technology companies and infrastructure-linked businesses will depend on the market’s opening and subsequent trading during the session. The supplied report does not provide an official statement from US regulators, details of any proposed restrictions, or a confirmed response from Indian market authorities.
