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2026-11-06 08:50:27
[Hot Market Recap: Nasdaq Suffers Largest Single-Day Drop in 19 Months, AI Regulatory Concerns Trigger Sell-Off in Chip Stocks] 1. US stocks closed sharply lower on Thursday, with the Nasdaq plunging 5.52%, its largest single-day drop in 19 months, confirming it has entered a technical correction phase; the S&P 500 fell 4.36%, and the Dow Jones Industrial Average dropped 3.44%. The total market capitalization of S&P 500 components evaporated by approximately $3 trillion. 2. Following the Democrats' victory in Congress, the market worried about stricter AI regulations, especially rising opposition in some states to new data centers, which could slow down AI infrastructure development. Nvidia plunged more than 9%, and the Philadelphia Semiconductor Index plummeted more than 12%. 3. In terms of individual stocks, Qualcomm fell 9.5% due to weaker-than-expected fourth-quarter smartphone chip sales; Meta fell 4%, and Amazon and Alphabet both fell 2.2%. Data center companies IREN and Applied Digital both fell more than 14%, and CoreWeave fell nearly 10%; AI-related utility and equipment suppliers GE Vernova and Constellation Energy also declined. Tesla and SpaceX also fell, despite Musk's nearly $500 million spending on Republican candidates in the midterm elections. Analysts say this sell-off resembles a "capitulation sell-off" in data center capital expenditure beneficiaries, particularly semiconductor stocks, but the volatility may be excessive. Despite Thursday's sharp decline, the S&P 500 is still up 7.4% year-to-date, and the Nasdaq is still up 4.6%.
