Stocks fell sharply on Thursday after Democrats swept the midterm elections, as investors retreated from tech stocks.
“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,” CNBC reported.
The Nasdaq nosedived 5.5%.
The Dow lost 1,833.06 points or 3.44%, according to CNBC.
The S&P 500 dropped more than 4.25%.
The market rallied on Wednesday morning after the midterm elections but by Thursday more than $2.5 trillion was wiped out.
CNBC reported:
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 5.52% to close at 24,315.00. The tech-heavy index slid into correction territory, falling more than 10% below a record set last month.
The S&P 500 dropped 4.36% to end at 7,353.73. The Dow Jones Industrial Average shed 1,833.06 points, or 3.44%, and settled at 51,523.06.
The Dow more than wiped out its advance from Wednesday’s massive postelection rally. All three major averages posted their worst day since April 2025.
More on this from CNBC:
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