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A broad selloff in technology shares erased roughly $2.5 trillion in market capitalization, according to reports. Investors are reacting to expectations that an incoming Democratic-led government could impose stricter oversight on AI and tech firms than the current administration.
Institutional investors preparing to participate in Anthropic's planned initial public offering are pushing for a more conservative valuation of around $1.5 trillion, according to reports. The push comes as a recent selloff in technology stocks has made some prospective buyers wary of pricing the AI company at the higher valuations previously discussed.
Technology shares and cryptocurrencies both fell sharply over the Halloween weekend, as weak earnings reports from major AI-focused companies combined with news of a large-scale crypto hack to unsettle investors. The simultaneous declines marked one of the market's worst stretches in months for high-growth assets.
US technology stocks fell for a second straight day, with the Nasdaq down over 3.5%, Intel shares plunging as much as 30%, and Reddit dropping 26%. Alphabet extended losses after losing more than $500 billion in market value the previous day, as combined 2026 AI spending commitments from Meta, Alphabet, Oracle, Amazon and Microsoft reach $800.6 billion.
Shares of Intel, Reddit and Amazon dropped as investors reacted to heavy AI infrastructure spending and signs that AI-driven search tools are cutting into traditional web traffic. The sell-off hit multiple major tech names on the same trading day, reflecting broader unease about AI-related costs and revenue risks.
Nvidia and Salesforce both posted stronger-than-expected quarterly profits, citing robust demand tied to artificial intelligence spending. The upbeat results pushed technology shares higher and helped drive broader gains across Wall Street on Thursday, with Nvidia contributing the biggest boost to the market.
European stock indexes opened with a mixed performance, showing no unified direction across the region. However, artificial intelligence-related stocks stood out with notable gains, buoyed by Nvidia's latest earnings report.