Nvidia, chip shares lead stocks plunge amid AI concerns as midterm election results unsettle markets
Wall Street falls sharply
U.S. stocks closed lower Thursday after a steep retreat in AI-related shares shook investors. The Dow Jones Industrial Average lost 1,833.06 points, a decline of 3.44%. The Nasdaq Composite fell 5.52%, its worst daily performance since April 2025. Another account of the closing figures put its drop at 5.2%.
Election adds policy uncertainty
Investors assessed what Democrats’ broad midterm election victories might mean for the technology sector. The issues under consideration included potential AI regulation and the future of data center development.
Technology and chip companies were among the steepest decliners as those concerns coincided with the AI stock selloff. The market moves reflected uncertainty about how election outcomes could affect the industry.
Chip shares lead declines
Nvidia shares slid about 9.26%. The Philadelphia Semiconductor Index fell more than 12%, showing the scale of the pressure on chipmakers. The Nasdaq’s slide came as AI and semiconductor stocks faced a sharp wave of selling. Those losses helped drive the broader market’s steep decline.
Key points
- The Dow fell 1,833.06 points, or 3.44%, on Thursday.
- The Nasdaq dropped 5.52%, its worst day since April 2025.
- Investors weighed possible AI regulation and data center effects after Democrats’ midterm victories.
- Nvidia lost about 9.26%, while the Philadelphia Semiconductor Index fell more than 12%.