Stocks plunge as AI shares sell off after Democratic midterm wins
The Nasdaq fell 5.52% in its worst session since April 2025, and Asian markets followed lower on Friday.
U.S. stocks fell sharply Thursday as investors sold off artificial intelligence shares. The Dow Jones Industrial Average dropped 1,833 points, or 3.44%, and the S&P 500 fell 4.36%. The Nasdaq Composite lost 5.52%, its worst day since April 2025, and closed more than 10% below its Oct. 6 record, which put it in correction territory.
Analysts pointed to several causes. Investors worried about heavy borrowing by tech companies to build data centers, higher interest rates, and the chance that data center construction could face more political pushback after Democrats' midterm gains. Nvidia fell more than 9%, and the Philadelphia Semiconductor Index dropped more than 12%.
On Friday, Asian markets fell sharply. South Korea's KOSPI dropped more than 8% and briefly halted trading before recovering to about a 7% loss. Japan's Nikkei fell roughly 6%, and Taiwan's index dropped more than 8%. U.S. Nasdaq futures pointed to a rebound, while Dow futures were lower. Analysts warned of more volatility ahead.
Key points
- Dow fell 1,833 points (3.44%) on Thursday; Nasdaq fell 5.52%.
- Nasdaq entered correction territory, more than 10% below its October record.
- KOSPI fell more than 8% and briefly halted trading; Nikkei fell about 6%.
- Analysts cite election results, data center debt, and crowded trades as causes.
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Summarized with AI from the sources above and reviewed before publishing.
