Wall Street loses $2.5 trillion as Nasdaq plunges 5.5%

Wall Street suffered a massive selloff on Thursday, wiping out $2.5 trillion in market value in a single day amid fears over artificial intelligence spending and potential industry regulation. The Nasdaq plunged 5.5%, its worst session in 18 months, entering correction territory, while the Dow fell 1,833 points and the S&P 500 saw its steepest drop since April 2025. Nvidia dropped 9.3%, and chip-related firms like SanDisk and Western Digital suffered heavy losses. The selloff spread to Asian markets on Friday, with Japan's Nikkei sliding 6% and South Korea's Kospi tumbling over 8%. Investors moved to safer assets, driving the 10-year Treasury yield lower, while the VIX fear index surged 61%.