Stock markets experienced a sharp reversal on Thursday, erasing gains from the previous day’s post-election rally as investors rapidly moved away from technology stocks.
The Nasdaq Composite fell 5.1% and entered correction territory—trading more than 10% below its record set last month. The S&P 500 declined 3.9%, marking its worst day since April 2025. The Dow Jones Industrial Average shed 1,620 points, or 3%, completely erasing Wednesday’s post-election advance. The Russell 2000 small-cap index dropped 4.6% and also entered correction territory.
According to market observers, the primary driver was investor concern about a potential slowdown in data-center buildout. Following Democrats’ strong performance in the midterm elections—including victories in key gubernatorial races and a sweep of both chambers of Congress—some Democratic leaders have signaled opposition to major tech expansion projects. Sen. Bernie Sanders of Vermont, who caucuses with Democrats, called for a national data-center moratorium, writing on X that “Americans don’t want Big Tech oligarchs wrecking the environment, gutting jobs and threatening humanity’s future.”
Technology and semiconductor stocks bore the brunt of the selloff. Broadcom and Nvidia each fell 8%, while Oracle declined 7%. Qualcomm reported earnings that beat estimates but dropped 10% due to a weaker-than-expected forward guidance. The iShares Semiconductor ETF (SOXX) declined 11%, representing its worst day since March 2020. Cloud computing companies were also hit hard, with CoreWeave losing 13%, Nebius sliding 16%, and Iren dropping 17%.
Tim Holland, chief investment officer at Orion, attributed the selling to investor uncertainty: “Stepping away until they get a better sense of the implications of the midterms around the AI capex cycle in particular, which is the biggest economic tailwind we’ve had going for us for the last, call it, three years.”
The selling pressure extended beyond tech stocks. Caterpillar declined 5%, JPMorgan and Boeing each fell 4%, and Nike pulled back 3%. Keith Lerner, chief investment officer at Truist Wealth, noted that the tech decline was “feeding itself into the broader market,” with the market correction spreading across sectors.
This represented a sharp turnaround from Wednesday, when the Dow jumped more than 1,500 points following the Democratic electoral victories, marking its best day since April 2025.
Key facts
- The Nasdaq Composite fell 5.1% and entered correction territory, down more than 10% from its recent record
- The S&P 500 fell 3.9%, its worst day since April 2025, while the Dow dropped 3%
- Semiconductor stocks were hit hardest, with Broadcom and Nvidia each falling 8%, and the semiconductor ETF declining 11%
- Investors cited concerns about potential data-center buildout slowdown following Democrats’ strong midterm election performance
- Sen. Bernie Sanders called for a national data-center moratorium, citing environmental and labor concerns