US Stock Market Crash: AI Companies Lose $2.5 Trillion in Market Value in a Single Day

The US stock market witnessed a massive decline on Thursday, with artificial intelligence (AI)-related companies suffering the biggest losses. The combined market value of major Nasdaq-100 companies dropped by nearly $2.5 trillion in a single day. In Indian currency, this amounts to approximately Rs 236 lakh crore.

The sharp decline came amid growing concerns among investors that the Democratic Party’s major victory in the US midterm elections could lead to tighter government regulations on AI companies.

Investors are particularly worried about the possibility of new restrictions on data centre construction and delays in infrastructure development. Such measures could affect the expansion plans of major technology and AI companies.

Nasdaq Witnesses Massive Decline

According to media reports, the Nasdaq Composite Index plunged 5.5% after the market opened on Thursday. This is being described as its biggest single-day decline since the ‘Liberation Day’ market turmoil in April 2025.

AI-related stocks have continued to fall for the second consecutive day. The sell-off has also affected semiconductor and chip manufacturing companies.

The semiconductor index dropped nearly 12%, reaching its lowest level in more than six months. Meanwhile, shares of AI infrastructure company CoreWeave also declined by 10%.

The Nasdaq Composite Index has fallen approximately 12% since touching its record high on October 6.

A stock market index is generally considered to have entered correction territory when it falls 10% or more from its recent peak. With its latest decline, the Nasdaq Composite has entered this market correction phase.

Trump Blames Democrats for Market Crash

US President Donald Trump has also reacted to the sharp decline in the stock market. In a social media post, he claimed that the election results had led to one of the worst days in stock market history.

Trump blamed the Democrats for the market turmoil, arguing that the decline had also reduced the value of Americans’ 401(k) retirement accounts.

However, he expressed confidence that the US economy and stock market would recover soon.

In his post, Trump also took a swipe at the Democrats by referring to them as “Dumocrats”.

What Lies Ahead for AI Companies?

Investors are now closely monitoring the possibility of stricter regulations on artificial intelligence companies following the Democrats’ electoral victory.

The potential impact of new government policies on data centre construction and AI infrastructure expansion remains uncertain.

Any restrictions or delays in infrastructure development could affect the growth prospects of major AI companies and technology stocks.

For now, market participants are waiting for greater clarity on the government’s regulatory approach towards the AI industry. The developments could play a crucial role in determining the future direction of the US stock market.