More than £2trillion was wiped off the value of the Nasdaq as a tech rout fuelled fears of a stock market crash – and left Elon Musk nursing billions of pounds of losses.
asserted
rout → wipe → losses
After making solid gains in the immediate aftermath of the midterm elections in the US, the index plunged as much as 6.4 per cent in early trading in New York on Thursday.
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index → make → Thursday
That slashed the value of the tech giants that make up the Nasdaq 100 by £2.2trillion and took losses since its record high on October 6 to £4.6trillion.
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that → slash → 4.6trillion
The Nasdaq is now in ‘correction’ territory – defined as a drop of at least 10 per cent – having fallen by almost 15 per cent since the peak.
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Nasdaq → define → peak
The sell-off was echoed on other major benchmarks with the Dow Jones Industrial Average down nearly 3 per cent and the S&P 500 off close to 4 per cent.
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off → echo → Average
Elon Musk has lost billions as shares in his firms SpaceX and Tesla tumble
Traders in New York have seen Wall Street's 'fear gauge' soar
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gauge → lose → York
In London, the FTSE 100 closed down 0.4 per cent or 46.55 points at 10,782.66 having risen as high as 10,948 before the tech slump in New York soured the mood.
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slump → close → mood
The early rise put the UK’s blue-chip index within touching distance of its all-time high of 10,989 and sparked hopes that it could reach 11,000 by Christmas.
Dan Coatsworth, head of markets at AJ Bell, said: ‘It’s not out of the question for the FTSE 100 to top 11,000 in the coming days or weeks.
uncertain
FTSE → put → days
A big US tech sell-off has spooked investors, however, and that has scuppered the FTSE 100’s chances today.’
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that → spook → chances
The so-called ‘tech wreck’ came as concerns mounted that sweeping Democrat victories in the US elections will put the brakes on AI infrastructure development amid opposition to data centres.
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victories → call → centres
The political uncertainty adds to pressure on AI-related stocks as investors question whether huge spending on the pioneering technology will generate sufficient returns.
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spending → add → returns
Ted Parkhill, founder and chief executive of Incline Investment Management, said: ‘The market’s moving from the promise of AI to the price of AI.’
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market → say → AI
Musk was among the biggest losers as shares in his companies SpaceX and Tesla tumbled 9 per cent and 11 per cent respectively.
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shares → tumble → companies
Nvidia shares dropped 8 per cent while SanDisk was down 17 per cent, Advanced Micro Devices tumbled nearly 15 per cent and Micron Technology plunged 14 per cent.
Chris Beauchamp, chief market analyst at IG, described it as a ‘bonfire of tech sentiment and market fireworks’.
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Beauchamp → drop → sentiment
Wall Street’s ‘fear gauge’ surged to its highest level in seven months.
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gauge → surge → months
The Vix jumped by almost 70 per cent in early trading, before dropping back.
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Vix → jump → trading
The volatility index measures attitude to risk – the higher the reading, the more panicked investors are.
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investors → measure → risk
It touched 28, up from 17 at opening but still less than half the level hit when Donald Trump unveiled his Liberation Day tariffs in April 2025.
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Trump → touch → April
Susannah Streeter, chief investment strategist at Wealth Club, said: ‘Fresh panic over the AI trade has hit Wall Street hard, with a steep sell-off sending shockwaves rippling to other markets.
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off → say → markets
‘Fears that the vast sums poured into AI infrastructure may not deliver the returns investors have been banking on are now colliding with the prospect of a sharp slowdown in data centre construction.
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investors → pour → construction
‘The contagion is spreading.
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contagion → spread → ?
The FTSE 100, which had been on the front foot and is far less exposed to big tech, erased its earlier gains and turned negative.
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which → expose → gains
Even a tech-lite index with defensive appeal hasn't been able to shrug off this big case of the jitters.’
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index → shrug → jitters
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This → take → commission
These deals are chosen by our editorial team, as we think they are worth highlighting.
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they → choose → team
This does not affect our editorial independence.
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This → affect → independence
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