Nasdaq slides 5.5%, enters correction as AI regulation fears hit chips
Why it matters: The selloff erased more than 10% from the index’s Oct. 6 record close as investors reassessed AI data-center spending.
US stocks sank Thursday, with the Nasdaq Composite dropping 5.52% to 24,315 and falling more than 10% from its Oct. 6 record close, a threshold that marks a technical correction. The S&P 500 lost 4.36% to 7,353.73 and the Dow Jones Industrial Average fell 3.44% to 51,523.06. Chipmakers and other AI-linked shares led the retreat after Democratic victories in the midterm elections raised concern that tougher rules could slow the buildout of data centers and related infrastructure. Nvidia fell alongside Meta Platforms, Amazon, Alphabet, CoreWeave, Nebius Group, IREN, Applied Digital, GE Vernova and Constellation Energy. Trading volume reached 26.9 billion shares, far above the recent 20-session average of 17.7 billion.