S&P 500 sees $1.8 trillion wiped out as Nasdaq logs record point drop
Friday's selloff erased $1.8 trillion in market capitalization from the S&P 500 and pushed the Nasdaq Composite to a record one-day point decline. MarketWatch reports the rout was driven by an exit from chip stocks and questions over the sustainability of AI capex. Analysts debate whether the move is the start of a structural reset or a tactical pullback.
Photo: Arpan Parikh / PexelsWall Street suffered its sharpest single-session correction of the AI-led bull market on Friday. MarketWatch reports that the S&P 500 lost about $1.8 trillion in market value, while the Nasdaq Composite recorded its biggest one-day point decline on record. Chip stocks bore the brunt, with the semiconductor index marking its worst day in six years, led by losses in Marvell Technology and Micron.
Two concerns drove the move: a wave of bond issuance from Big Tech to fund AI capex, and Friday's payrolls data, which trimmed expectations of near-term rate cuts. Investors flagged reports that Meta is considering raising tens of billions of dollars in debt to fund its AI buildout, reinforcing the perception that AI spending is migrating off balance-sheet cash flows.
Analysts are split on the nature of the pullback. Wharton's Jeremy Siegel argued that sharp days like Friday's are "rarely the top" of a rally. Other strategists countered that valuations in the narrow group of stocks driving the rally remain stretched relative to historical averages, raising the prospect of a broader repositioning. This is not investment advice.
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