AI crash on Wall Street: $2.5 trillion wiped out, Nasdaq's worst session since 2020

Wall Street suffered its worst Nasdaq session since 2020 as AI-linked stocks shed roughly $2.5 trillion in market value, with the Nasdaq 100 falling 6.4% amid investor rejection of data-center-related names and pressure tied to congressional Democrats. The selloff erased a massive chunk of the AI trade’s valuation in a single session, underscoring how concentrated the market’s gains had become around data-center and artificial-intelligence exposure. The scale of the drawdown matters because it signals a sharp repricing of AI infrastructure spending expectations rather than a broad-based macro shock. What to watch next is whether data-center and AI-adjacent names stabilize or extend losses, and whether the political backdrop in Congress continues to weigh on sentiment.