Wall Street stabilizes after AI sell-off erases $2.5 trillion in Nasdaq value

Wall Street showed signs of stabilizing Friday as dip buyers supported the battered AI trade, following a sell-off that erased $2.5 trillion in Nasdaq market value amid fears of tighter US AI regulations. The Nasdaq 100 climbed 2.3 percent in early New York trading, while the S&P 500 rose 1 percent, after the Nasdaq Composite fell 5.5 percent Thursday on concerns that Democratic midterm victories could stall AI infrastructure expansion. Nvidia and other chipmakers rebounded between 4.5 and 8 percent in premarket trading. Asian markets slumped sharply, with Japan's Nikkei and South Korea's Kospi falling about 6 percent and Taiwan's benchmark plunging over 8 percent at one point. The Nasdaq Composite is now in correction territory, down nearly 12 percent from its October 6 record close.