In brief
U.S. shares fell dramatically on Thursday after a wave of AI and chip‑maker selloffs rattled technology stocks. The Dow, S&P 500 and Nasdaq dropped 3.4%, 4.4% and 5.5% respectively, while the VIX surged 69.66% to 28.18. Market‑watchers blamed a possible shift in regulatory outlook after the midterm elections. The rout also saw the semiconductor sector drop 12% in a single day.
U.S. stocks plunged Thursday after a massive selloff in semiconductor and artificial‑intelligence–related shares racked technology stocks and sent the three major indexes into sharp decline. The Dow Jones Industrial Average fell 1,833.06 points, or 3.4%, to 51,523.06, the S&P 500 dropped 334.89 points, or 4.4%, to 7,353.73, and the Nasdaq Composite fell 1,421.52 points, or 5.5%, to 24,315.
All 11 sectors in the S&P 500 ended lower, led by information technology, followed by consumer discretionary and industrials, as reported by Xinhua. The PHLX “SOX” Semiconductor sector index slid 12%, the largest one‑day decline since March 2020, according to the Wall Street Journal.
The Cboe Volatility Index, known as the “fear gauge,” surged 69.66% to close at 28.18, its highest level since late March.
Jay Hatfield, chief executive of Infrastructure Capital Advisors, said,
“This is a true panic. This is 100 percent about the chip stocks and the potential slowdown in the AI trade.”
President Donald Trump called the selloff a “worst day in history based on the results of the election” and blamed Democrats, saying it was a sad thing to watch, in a social media post echoed by Xinhua.
Bloomberg reported that the chip‑maker and AI‑related selloff quickly wiped out earlier gains in U.S. equities, with losses gradually spreading to other sectors. The rout reflects concerns that Democratic victories could lead to tighter restrictions on data‑center construction and slow AI infrastructure expansion, a fear that was also highlighted by BBC News.
BBC noted that shares in companies heavily exposed to AI data‑centre construction fell sharply, echoing worries about a potential regulatory slowdown. The momentum of the selloff has raised questions about the future of AI build‑out, with market sentiment under pressure and confidence likely to take time to restore.
