The S&P 500 dropped 2.6%, while the Nasdaq sank 4.1%, officially entering correction territory. The Dow Jones also fell more than 800 points on Thursday, erasing the prior session’s gains, as a sharp sell-off in technology shares dragged down the broader market. The rotation out of AI-related and technology stocks persisted, amid concerns that the Democrats’ victory could open the door to tighter regulation of US data centres and AI, potentially curbing demand for semiconductors.
Chipmakers faced heavy selling pressure, with Nvidia sliding 7.1%, Broadcom down 8%, Micron off more than 13%, AMD tumbling 14% and Applied Materials losing 10%. Tesla also extended its declines, falling 9.6%. Elsewhere, Qualcomm slumped nearly 12% after issuing a disappointing profit outlook.
Consumer discretionary, industrials and communication services names were also hit hard, while consumer staples proved comparatively resilient, outperforming the broader market.
