Wall Street's $2.5 Trillion Selloff: A Warning, Not a Crash

Wall Street suffered a sharp selloff on Thursday, erasing over $2.5 trillion in market value, with the Nasdaq experiencing its biggest drop in 19 months as all 11 S&P 500 sectors closed lower. Financial analyst Vítor Madeira attributes the decline primarily to profit-taking in AI-linked stocks, which had shown weakness for a month, rather than a single catalyst. He notes margin calls forced funds to close positions rapidly, though he admits no definitive explanation exists. Madeira dismisses comparisons to the 2000 dotcom bubble, citing AI companies' record earnings, and views the drop as a warning sign rather than a crash. He expects market stabilization ahead, noting European and Chinese markets did not follow the US decline.