Tech stocks suffer worst day since 2020 as AI trade sells off; Nasdaq enters correction
The Dow fell 1,833 points and the S&P 500 lost an estimated $2.9 trillion in value, the largest one-day loss on record.
Tech stocks sold off sharply on Thursday, pulling the Nasdaq Composite into correction territory. The index closed 5.52% lower, its worst day since April 2025, and finished more than 10% below its Oct. 6 record. The Dow Jones Industrial Average fell 1,833.06 points, or 3.44%.
Investors sold chip and AI-linked stocks after Democrats swept the House and Senate in Tuesday's midterm elections. Traders worried that tighter state and federal rules could slow data center construction. Nvidia dropped about 9.26%, and the Philadelphia Semiconductor Index fell more than 12%. The iShares Semiconductor ETF (SOXX) fell 12%, its worst day since March 2020.
Market estimates put the S&P 500's one-day loss in market value at about $2.9 trillion, the largest on record. Analysts said the drop followed a rally the day before, when markets rose as election uncertainty eased. Attention now turns to the October jobs report due Friday morning, which could either calm or deepen investor worries.
Key points
- Nasdaq closed 5.52% lower, entering correction territory
- Dow fell 1,833.06 points, or 3.44%
- Nvidia fell about 9.26%; chip index down more than 12%
- Investors fear tighter rules on AI and data centers after the midterms
Read the original reporting
- MarketWatchTech stocks log worst day since 2020 as carnage comes to the AI trademarketwatch.com
- CNBCNasdaq drops into correction territory — here’s what typically happens nextcnbc.com
- BBC WorldMajor tech stocks plunge as US midterms add to fears of AI slowdownbbc.co.uk
- Fox BusinessStocks plunge as Dem midterm sweep fuels AI regulatory concernsfoxbusiness.com
Summarized with AI from the sources above and reviewed before publishing.
