In brief
U.S. stocks fell sharply on Thursday as a large selloff of AI‑related and chip stocks pushed the Dow, S&P 500 and Nasdaq down 3–5% each. The VIX spiked to its highest level since March, and all 11 S&P 500 sectors ended lower. Concerns that new Democratic‑controlled Congress may tighten data‑center rules are blamed for the rout, and the semiconductor index slid 12%—the biggest one‑day drop since March 2020.
U.S. stocks fell sharply on Thursday as a mass selloff of AI‑related and semiconductor shares hammered the three major indexes. The Dow Jones Industrial Average fell 1,833.06 points, or 3.4 percent, to 51,523.06; the S&P 500 dropped 334.89 points, or 4.4 percent, to 7,353.73; and the Nasdaq Composite Index tumbled 1,421.52 points, or 5.5 percent, to 24,315.
All 11 S&P 500 sectors closed lower, led by information technology, followed by consumer discretionary and industrials. Semiconductor stocks suffered particularly heavy losses as worries grew that the new Democratic majorities in Congress could impose tighter restrictions on data‑center construction, slowing AI infrastructure growth.
"This is a true panic. This is 100 percent about the chip stocks and the potential slowdown in the AI trade," said Jay Hatfield, chief executive of Infrastructure Capital Advisors.
U.S. President Donald Trump blamed Democrats for the market decline, calling it a "sad thing to watch" in a social media post on Thursday and describing the selloff as "one of the Worst Days in History based on the results of the Election."
Investor fear surged as the Cboe Volatility Index (VIX), known as "Wall St.'s fear gauge," jumped 69.66 percent to close at 28.18, its highest level since late March.
The semiconductor‑heavy PHLX SOX index slided 12%, the largest one‑day decline since a 16% rout on March 16, 2020, according to the Wall Street Journal.
