Stocks plummeted on Thursday, erasing the sharp gains from the rally seen in the wake of the U.S. mid-term elections, as investors accelerated their move away from technology stocks on fears of a data-center buildout slowdown.
The Dow Jones Industrial index plunged 1,833.06 points, or 3.4%, to conclude Thursday at 51,523.06.
The Dow erased all of its advance from Wednesday’s massive postelection rally.
The S&P 500 index dropped 334.89 points, or 4.4%, to 7,353.73.
The tech-heavy NASDAQ dropped without a parachute, 1,421.52 points, or 5.5%, to 24,314.98.
Stocks related to the artificial intelligence trade — particularly those linked to the chips industry and data centers — slid for a second day. Investors fear that a Democratic sweep of both chambers of Congress as well as victories in key gubernatorial races could spell more regulation of the AI buildout across the country.
Chipmakers Broadcom and Nvidia each fell 9% Thursday, while software stock Oracle moved lower by 7%. Another chip stock, Qualcomm, reported earnings that beat estimates, but the stock dropped 10% on a weaker-than-expected earnings outlook.
Shares of neocloud companies also retreated, with CoreWeave losing 11% and Nebius as well as Iren sliding 16%, amid those worries about a backlash to the industry in light of the election results in various states.
Thursday’s selling pressure was so intense that it spread to other parts of the market. Shares of industrial giant Caterpillar declined 5%, while financial stock JPMorgan fell 4%. Aerospace name Boeing and retailer Nike pulled back 3%.
Prices for the 10-year Treasury gained slight ground, lowering yields to 4.84% from Wednesday’s 4.88%. Treasury prices and yields move in opposite directions.
Oil prices recovered $2.67 to $90.79 U.S. a barrel.
Gold prices hiked $37.00 to $4,1100 U.S. an ounce.
