Dow drops 1,200 points after midterm election rally
Stocks fall as investors adjust to political shifts impacting AI sector.
The Brief
- Dow Jones fell 1,220 points, or 2.2%, after a previous day's rally.
- Nasdaq and S&P 500 also declined, with Nasdaq entering correction territory.
- AI firms and tech giants saw sharp declines amid political uncertainty.
The Dow Jones Industrial Average fell 1,220 points, or 2.2%, on Thursday, reversing gains from the previous day.
The S&P 500 dropped 3.2%, and the Nasdaq fell 4.8%, putting the index into correction territory, meaning it has fallen more than 10% from a previous peak last month.
Investors appeared to digest risk for the sector posed by newly empowered Democrats, many of whom ran campaigns critical of artificial intelligence data centers.
Nvidia fell 7%, Advanced Micro Devices dropped 12%, and SanDisk plummeted more than 15% as AI hardware firms were hit hardest.
Other major tech companies, including Microsoft and Amazon, also saw declines, with shares falling more than 2% each.
The downturn in markets largely reversed blockbuster gains from the previous session.
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