Nasdaq Drops 3.9% Into Correction as Dow Sheds 1,153 Points in Tech Rout
Updated
Updated · CNBC · Nov 4
Nasdaq Drops 3.9% Into Correction as Dow Sheds 1,153 Points in Tech Rout
3 articles · Updated · CNBC · Nov 4
Summary
The Nasdaq fell 3.9% and slid more than 10% below last month’s record, wiping out the prior session’s gains as investors dumped technology shares after the U.S. midterm elections.
Election results drove fears that a Democratic sweep could slow the AI-driven data center buildout that has powered markets for roughly three years, prompting investors to pull back from chip and software names.
Chip and AI-linked stocks led the sell-off: Nvidia and Broadcom each lost 6%, Qualcomm dropped 11% despite an earnings beat, and the SOXX semiconductor ETF was down as much as 11%—its worst day since March 2020.
The Dow fell 1,153 points, or 2.2%, and the S&P 500 lost 2.8%, reversing most of Wednesday’s postelection rally even as defensive gainers such as Chevron and Johnson & Johnson held up better.
Tesla fell 9%, SpaceX 7%, and neocloud stocks including CoreWeave, Nebius and Iren also tumbled, underscoring how election-driven concern over AI capital spending spread across the broader trade.