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The NASDAQ Composite plummeted on Thursday, erasing the sharp gains from the previous session, as investors continued to move away from technology stocks.
The Dow Jones Industrial index plunged 1,056.48 points, or 2%, by noon Thursday to 52,299.64, as gains in stocks such as Chevron and Johnson & Johnson were not enough to spare the 30-stock index from the tech selling spree. The Dow erased most of its advance from Wednesday’s massive rally.
The S&P 500 index dropped 216.62 points, or 2.8%, to 7,471.64.
The tech-heavy NASDAQ slumped 963.22 points, or 3.8%, to 24,773.30.
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 6% Thursday, as did others such as software stock Oracle. Another chip stock, Qualcomm, reported earnings that beat estimates, but the stock dropped 11% on a weaker-than-expected earnings outlook. Additionally, Elon Musk’s Tesla shed 9% and SpaceX dropped 7%.
Shares of neocloud companies also retreated, with CoreWeave losing 9%, Nebius sliding 13% and Iren shedding 14%, amid those worries about a backlash to the industry in light of the election results in various states.
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 $2.21 to $90.33 U.S. a barrel.
Gold prices hiked $50.20 to $4,123.20 U.S. an ounce.
