Nasdaq slumps 5% as AI regulation fears grip Wall Street

The Nasdaq tumbled as much as 5% on Thursday, heading for its worst day in 18 months and slipping into correction territory, as investors bet that Democratic midterm gains will bring tougher scrutiny of AI datacentre expansion. Chip stocks led the selloff, with SanDisk down 19% and Western Digital off 16.5%, while the Dow fell more than 1,000 points.