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Nasdaq set to confirm correction as AI stocks tumble

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Nasdaq set to confirm correction as AI stocks tumble

Business News Tech AI Nasdaq set to confirm correction as AI stocks tumble

The shock selloff comes a day after the Democrats' election victory including in some key data-center states drove concerns about a slowdown in the AI data-center buildout, optimism about which had pushed stock markets to record highs earlier this year.

The Nasdaq Composite was set to confirm a correction on Thursday as chipmakers sank on fears of tougher AI regulation after the Democrats' midterm sweep, setting up the index for its worst day since the April 2025 "Liberation Day" rout. Nvidia dropped 7.7%, while the broader Philadelphia SE Semiconductor index plunged nearly 10%. The shock selloff comes a day after the Democrats' election victory including in some key data-center states drove concerns about a slowdown in the AI data-center buildout , optimism about which had pushed stock markets to record highs earlier this year.

"Investors appear to be recognizing that some newly elected members of Congress and governors are looking to slow the pace of AI infrastructure development," said Melissa Brown, global head of investment decision research at SimCorp. " The sharp declines put the Nasdaq Composite on track to confirm a technical correction, or a 10% drop from its October 6 record-high close. The more narrow Nasdaq-100 had confirmed a correction on Monday. 2%, the Nasdaq-100 is set to erase over $2 trillion in market value, if the losses hold. Most large-cap tech stocks also lost ground after Wednesday's rally. 7% and 1%, respectively. Data center operators IREN and Applied Digital , neoclouds CoreWeave and Nebius Group and AI-exposed utilities and equipment suppliers such as GE Vernova and Constellation Energy all saw steep losses.


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