US Stocks Lose $3.5 Trillion as Nasdaq 100 Suffers Worst Day Since March 2020

US equities suffered a severe selloff, wiping more than $3.5 trillion from market capitalization as concerns over tighter AI regulation and data center development weighed on technology stocks, according to Reuters.
The Nasdaq 100 fell 6.4%, its worst session since March 2020, while the S&P 500 lost 4.4% and the Dow declined 3.4%. The semiconductor index plunged 12.3%, led by Micron $MU (-17.5%), AMD $AMD (-17.3%), Arm $ARM (-13.1%) and Nvidia $NVDA (-9.3%).
Crypto markets also weakened. Bitcoin $BTC fell 5.5% and Ethereum $ETH dropped 7.5%, with nearly $200 billion reportedly erased from total crypto market value and more than $1 billion in liquidations. The VIX surged approximately 63%.
Investors are concerned that the Democratic sweep of Congress could lead to restrictions on AI infrastructure. However, the incoming Congress does not take office until January, and President Trump retains veto power over legislation. Overriding a presidential veto requires two-thirds support in both chambers.
The selloff also coincided with renewed concerns about Federal Reserve tightening, suggesting that political uncertainty was not the only source of market pressure.