Nasdaq slides as the AI-chip selloff intensifies
Technology losses spread through the U.S. market after Wednesday's rally.
U.S. stocks fell sharply Thursday morning as selling in semiconductor and data-center stocks spread through the market, reversing the broad relief rally that followed the midterm elections.
The Nasdaq Composite fell 5% and the S&P 500 lost 3.3% in Yahoo Finance's 11:37 AM ET update, deepening losses from the earlier morning snapshot. Those figures describe that update, not current prices or closing results.
The semiconductor index was down 11% in the same update. The weakness extended beyond chipmakers into companies tied to the AI infrastructure buildout.
By its noon update, NBC News described the S&P 500 as down 3.1% after recovering from earlier losses. The different snapshots show a volatile session, not a settled closing result.
Investors were reassessing the outlook for data-center construction and regulation after the election. That is an explanation offered for the selling, not a confirmed policy change or proof that one political development caused every price move.
The U.S. decline follows sharp overnight losses in Asian chip stocks. Qualcomm also came under pressure after its handset-sales report and profit outlook.
The market is also heading into Friday's monthly U.S. jobs report. Thursday's lower weekly jobless claims and productivity release cover different parts of the economy and do not settle the payroll outlook.
The scale of the morning's decline is the new development: the earlier split between struggling chip stocks and stronger broad indexes has turned into a wider U.S. market selloff. Prices can change quickly before the close.
