Stocks plummeted on Thursday, erasing the sharp gains from the rally seen in the wake of the U.S. midterm elections, as investors accelerated their move away from technology stocks on fears of a data-center buildout slowdown.
The Nasdaq Composite declined 5.3% and dipped into correction territory, trading more than 10% below a record set last month. The S&P 500 was down 3.9%, heading for its worst day since April 2025. The Dow Jones Industrial Average shed 1,620 points, or 3%. The Dow erased all of its advance from Wednesday’s massive postelection rally. The small-cap Russell 2000 index decreased 4.6% and also entered a correction.
Stocks related to the artificial intelligence trade, particularly those linked to the chips industry and data centers, slid for a second day. Investors fear that a Democratic sweep of both chambers of Congress as well as victories in key gubernatorial races could decelerate the data center buildout...........................
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The Nasdaq Composite declined 5.3% and dipped into correction territory, trading more than 10% below a record set last month. The S&P 500 was down 3.9%, heading for its worst day since April 2025. The Dow Jones Industrial Average shed 1,620 points, or 3%. The Dow erased all of its advance from Wednesday’s massive postelection rally. The small-cap Russell 2000 index decreased 4.6% and also entered a correction.
Stocks related to the artificial intelligence trade, particularly those linked to the chips industry and data centers, slid for a second day. Investors fear that a Democratic sweep of both chambers of Congress as well as victories in key gubernatorial races could decelerate the data center buildout...........................
Dow tumbles 1,600 points, erasing its postelection rally; Nasdaq plummets 5%: Live updates
Investors continued to rotate away from technology stocks and into more defensive areas of the market.
