Wall Street faced a sharp reality check as a bruising sell-off across major technology companies fueled concerns that the artificial intelligence boom powering the equity bull market may be overextended.
The decline in US tech giants quickly engulfed global equities, triggering a fresh bout of volatility and forcing investors to reassess risk exposure in high-valuation growth stocks.
32 points, while the Nasdaq Composite and S&P 500 also posted significant losses.
The Dow Jones Industrial Average fell 395.32 points, while the Nasdaq Composite and S&P 500 also posted significant losses.
The selling pressure was not confined to the US; global equity markets extended their decline, with technology stocks bearing the brunt of the rout.
Tech-heavy indices struggled to find support as the wave of selling spread across borders, highlighting the interconnected nature of the current market fragility.
The move reflects growing anxiety among traders that frothy valuations in the AI sector have become unsustainable.