Nasdaq set for correction as investors reassess AI spending boom

Nov 5 : The Nasdaq slid 10 per cent from its record close on Thursday, on pace to confirm a correction as AI spending worries and heightened scrutiny of data-center expansion rattled tech stocks.

The tech-heavy Nasdaq Composite Index slipped 3.2 per cent to 24,796.06 points, down 10 per cent from its record-closing high of 27,599.89, reached on October 6.

Thursday's move wiped out all the gains the index had logged in the previous session following a the Democrat sweep of both houses of Congress as investors fretted about increasing scrutiny on further AI buildout.

A drop of a 10 per cent from the most recent record-closing high is considered a correction based on a widely used definition. The move would mark a second correction for the index this year.