Nasdaq heading for worst day in 18 months as Wall Street sustains widespread losses

Share index slumps 5% amid signs AI industry will face tougher regulation after Democrats’ midterm elections success

The Nasdaq share index was on track for its worst day in 18 months after slumping by up to 5% on Thursday amid growing signs that the artificial intelligence industry will face tougher regulation because of the midterm election results.

As Wall Street sustained widespread losses, the Nasdaq composite tumbled into ‘correction territory’ – more than 10% below its recent record high. The tech-heavy index was heading for its biggest one-day fall since Donald Trump announced his “liberation day” tariffs on US trading partners in April 2025.