Nasdaq Falls More Than 5% in Worst Day in 18 Months as Tech and AI Shares Plunge

The update

The Nasdaq Composite fell more than 5% at one point on Thursday, heading for its worst day in 18 months and entering correction territory, more than 10% below its recent record high. The S&P 500 fell about 3.8%, and chip stocks led the decline, with SanDisk down 19%, Micron down as much as 17% and AMD down more than 14%. SpaceX fell more than 9% and Tesla more than 11%.

Why it matters

Investors linked the sell-off to the Democrats’ midterm sweep, expecting tougher scrutiny of data-centre construction and AI spending, including in Texas, where the governor-elect campaigned for a moratorium on new data centres. Analysts said fears that vast AI infrastructure spending may not deliver the returns investors expected were colliding with a possible slowdown, sending shockwaves into other markets, while Britain’s FTSE 100 also fell.

What to watch

Watch whether the sell-off steadies or spreads further in global trading, how technology firms respond on data-centre plans and community concerns, and whether Democratic governors and lawmakers move from campaign pledges to actual restrictions on new projects and AI legislation.

Sources

• theguardian.com — confirms the Nasdaq entering correction territory, its worst day in 18 months, and the chip-led slump
• bbc.co.uk — confirms the falls in SpaceX, Tesla and chip shares, the S&P 500 drop, and the data-centre reaction to the midterms

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