US MARKET CLOSE | US Stocks Plunge as AI Tech Selloff Deepens, Dow Drops 1,844 Points

US stocks plunged on Thursday, erasing all post-election gains as investors fled tech shares on fears of a data center construction slowdown. The Nasdaq Composite fell 5.4% into correction territory, more than 10% below its recent record high. The S&P 500 declined 4.3%, and the Dow Jones Industrial Average dropped 1,844 points, or 3.7%, nearly wiping out Wednesday's post-election rally. The Russell 2000 small-cap index fell 4.4%, also entering correction. All three major indexes were on track for their worst single-day performance since April 2025, according to Sina Finance. AI-related stocks, particularly chipmakers and data center supply chain companies, fell for a second consecutive session. Investors worried that Democrats winning both chambers of Congress and key gubernatorial races could slow the pace of data center construction. Vermont Senator Bernie Sanders, who caucuses with the Democrats, called for a national pause on data center construction, posting on social media that Americans do not want Big Tech oligarchs damaging the environment and threatening humanity's future. Broadcom and Nvidia each dropped 9%, while software company Oracle declined 7%. Qualcomm fell 10% despite beating earnings expectations, as its guidance disappointed. The iShares Semiconductor ETF (SOXX) fell more than 10%, on pace for its worst day since March 2020. Emerging cloud computing stocks also sold off, with CoreWeave down 11% and Nebius and Iren each down 16%. Orion Chief Investment Officer Tim Holland said investors are temporarily stepping back to better understand the midterm elections' impact on the AI capital expenditure cycle, which has been one of the biggest drivers of economic growth over the past three years. The selloff spread beyond tech, with Caterpillar down 5%, JPMorgan down 4%, and Boeing and Nike each down 3%. Truist Wealth Chief Investment Officer Keith Lerner said the scale of tech selling has begun spreading across the broader market, creating a self-reinforcing dynamic. On Wednesday, the Dow had surged more than 1,500 points for its best day since April 2025 after Democrats' decisive midterm victory, with the S&P 500 and Nasdaq both rising more than 1%.