Investors pull U.S. stocks lower Thursday on AI worries
U.S. stocks plunged Thursday, with the Nasdaq Composite falling 5.5% into correction territory, CNBC reported. The S&P 500 dropped about 4.4%, and the Dow fell roughly 1,833 points. Business Insider said investors feared Democratic election victories could bring tighter regulation of data centers and AI development, slowing investment. CNBC-TV18 reported a semiconductor index fell 11%.
More context
U.S. stocks closed sharply lower Thursday, with AI-linked technology shares leading a selloff that spread across the market as investors worried data-center development could slow after the midterm elections. The Nasdaq Composite fell 5.5% and ended in correction territory, its worst single-day performance since April 4, 2025, CNBC reported. The S&P 500 dropped about 4.4%, while the Dow Jones Industrial Average fell roughly 1,833 points, or 3.4%. CNBC said all three posted their steepest one-day declines since the April 2025 tariff shock. CNBC-TV18 reported the semiconductor index fell 11%, with Nvidia and AMD leading the tech sell-off. Business Insider said investors were concerned newly elected Democrats could tighten regulation of data centers and AI development, potentially slowing investment spending.
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Reporting
- CNBC — Magnificent 7 loses $1 trillion. The most eye-popping stats from Thursday's tech stock plunge
- CNBC-TV18 India — US stocks tumble as semiconductor index sinks 11%; Nvidia, AMD lead tech sell-off - CNBC TV18
- Business Insider — AI Stocks Plunge As Investors Panic Over Capex, Risk of Data Center Slowdown - Business Insider
Verifier’s note
CNBC TV18, CNBC, and Business Insider each report that technology-led selling erased the post-election rally and dragged down the broader U.S. market on November 5. Their accounts are consistent with the proposed event and its timing.