Technology stocks suffered their steepest single-day decline since 2020, with the selloff hitting companies tied to the artificial intelligence trade hardest.
The S&P 500 shed an estimated $2.9 trillion in market capitalization, marking the largest one-day loss of market value on record.
The scale of the drop surpassed previous single-day declines, underscoring how concentrated the market’s recent gains had become in AI-related names.
Investors pulled back sharply from the sector as valuations came under renewed scrutiny following a prolonged rally.
The selloff spread across major technology companies, dragging the broader index lower and erasing weeks of gains.
Market participants pointed to stretched positioning in AI-linked stocks as a key factor behind the speed of the decline.
The record loss in market value highlights the risks of heavy concentration in a narrow group of high-flying technology shares.
Trading volume surged during the session as investors moved to reduce exposure to the sector.
