Nasdaq falls 5.52% into correction amid AI data center worries
The Nasdaq just saw its biggest single-day decline in 19 months, sinking 5.52% on Thursday and officially entering correction territory (that's a total fall of over 10% since early October).
Investors are spooked by talk of tougher AI regulations and a slowdown in building new data centers, key for powering all things AI.
Big names like NVIDIA took a hit, falling more than 9%, while the semiconductor sector slid more than 12%.
Communities approve data center restrictions
A lot of it comes down to growing pushback against massive data centers, with local communities and voters concerned about their environmental impact.
In recent elections, dozens of places approved new restrictions on these facilities, signaling that people want tighter oversight.
While this has rattled tech stocks for now, the AI boom is not over, but the rules of the investment game may be changing.