Tech stocks plunge as $3.6 trillion wiped out globally

Summarised from 2 outlets · Updated 6 Nov, 02:09 · Archive

Artificial intelligence stocks fell sharply globally after the US Republican Party's election loss made data centre restrictions more likely.

Artificial intelligence stocks fell sharply in the US on Thursday and Australia on Friday after the US Republican Party's election loss made restrictions on data centre construction more likely, prompting concerns about copycat decisions elsewhere. The Nasdaq fell 5.5 per cent, wiping out $3.6 trillion of shareholder wealth. This exceeded the total value of all stocks on the Australian Securities Exchange and marked the biggest single-day loss of shareholder wealth measured in dollars in history.

The 'Magnificent Seven' tech giants lost about $1.4 trillion combined. Nvidia, the microchip maker, fell 9 per cent and Tesla dropped 10 per cent. Share markets across the region fell sharply: South Korea's market fell 9 per cent on Friday morning, prompting officials to impose a temporary trading halt, and Taiwan Semiconductor Manufacturing Co, one of the world's biggest semiconductor makers, fell 8 per cent.

Sydney brothers Daniel and Will Roberts, who own IREN, a data centre business listed on the Nasdaq in 2021, were hit particularly hard. They lost about $430 million on Wednesday and Thursday. Their individual holdings in IREN were worth $2.5 billion in November.

How it is being reported

• The greatest loss of wealth in history raises doubts about the future of artificial intelligence$3.6 trillion was wiped out on the Nasdaq stock market - more than the total value of the ASX. Here is what happened in the biggest loss of shareholder wealth on a single day.The West Australian · 6 Nov, 01:29
• The greatest loss of wealth in history raises doubts about the future of artificial intelligence$3.6 trillion was wiped out on the Nasdaq stock market - more than the total value of the ASX. Here is what happened in the biggest loss of shareholder wealth on a single day.Perth Now · 6 Nov, 01:29

In this story: Nvidia · Tesla · Taiwan Semiconductor Manufacturing Co · Daniel Roberts · Will Roberts · IREN · United States · Australia

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