The Nasdaq Composite fell 5.52% to close at 24,315.00. It was the index's worst single-day performance since April 4, 2025, when it dropped 5.82%. The S&P 500 closed at 7,353.73, down 4.36%. The Dow Jones lost 1,833.06 points, or 3.44%, to close at 51,523.06.
The Nasdaq Composite entered a correction, falling more than 10% below a record set last month.
Tuesday's post-election rally was wiped out in a single day. Shares of AI and semiconductor companies were sold off en masse, and the trigger was the election: Democrats won control of both chambers of Congress, and investors are bracing for tougher oversight of the AI industry.
The main fear centers on data centers. In Texas, one of the largest data-center markets, the newly elected governor campaigned on pausing new data-center construction. Based on that, UBS estimates that if construction pauses spread, nearly a third of the new U.S. data-center capacity expected to come online in 2028 could be delayed or lost. This is a risk estimate, not confirmed project cancellations.
The hit landed on companies that sell hardware for data centers. Shares of chipmakers Nvidia and Qualcomm fell more than 9% on Thursday. Tesla and SpaceX, according to UPI, both fell 10%.
For suppliers the logic is simple: a delayed facility means delayed orders for processors, memory and servers. The next marker is the measures new state governors will introduce. So far, the governor-elect in Texas has only promised to pause construction.
