Wall Street tech stock selloff and AI bubble fears, Digi Mart USA News: Is the artificial intelligence bubble beginning to burst? Since Thursday’s market rout on Wall Street, the question has returned with force.
On that day, institutional and individual investors sold large volumes of technology shares, and the scale of the move surprised many observers.
The Nasdaq, the flagship index of technology stocks, plunged 5.52%, its steepest drop since April 2025, when Donald Trump imposed tariffs on countries around the world. In total, about $2.5 trillion in market capitalization vanished in a single session.
The so-called Magnificent Seven, comprising Apple, Microsoft, Google, Amazon, Meta, Nvidia and Tesla, alone shed about $800 billion.
Since its record high on October 6, the Nasdaq has already lost more than 13% of its value, entering correction territory. Panic spread on Thursday to the other major U.S.
indexes, with the S&P 500 collapsing 4.36% and the Dow Jones falling 3.44%. The Sox semiconductor index dropped more than 12%, which some experts described as a capitulation.
On Friday, the Nasdaq opened higher, up 1.4%, a move that could prove to be only a technical rebound, as some investors are cautious about reading too much into the recovery.
