The Nasdaq Index Entered a Correction After Falling More Than 5%: Online
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On Thursday, the sell-off of stocks related to artificial intelligence, chips, and technology in general intensified on the stock market. The Nasdaq Composite Index plummeted more than 5% and entered a correction phase. Oninvest will be monitoring trading in this online forum.
4:15 p.m. CET: The main trading session in New York began less than an hour ago. Here's what's happening:
All major stock market indices are down. The S&P 500 is falling by more than 2%, and the Dow Jones by 1%. The Nasdaq 100 Index has plummeted 4.4%. The Nasdaq Composite Index has lost more than 3%, which, according to Reuters, puts it on the verge of a correction.
The SOX Index, which tracks the performance of the 30 largest chipmakers, plummeted 7.1%. Shares of Qualcomm, which the day before failed to meet Wall Street’s forecasts for smartphone chip sales, are down 9%, while Arm Holdings is down nearly 12%. Nvidia shares are down 6.5%.
Shares of the cloud computing companies CoreWeave and Nebius are down 11% and 14%, respectively.
The sell-off intensified following the Democrats’ victory in the U.S. elections, including in certain states that are key for data center locations. “There is now a chance that the Trump administration’s two-year push to expand AI infrastructure will be scaled back in one way or another, since the current administration has simply ignored much of the AI agenda. We believe this aggressive expansion will face closer scrutiny,” Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, told Reuters.
16:33 CET: Shares of Elon Musk's companies, SpaceX and Tesla, fell by 8% and 9%, respectively. Since the start of the week, Tesla and SpaceX have collectively lost more than $430 billion in market capitalization, according to Bloomberg.
Musk has contributed nearly half a billion dollars to support Republican candidates. Following the election, investors fear that a Democratic victory will make it more difficult for Musk to expand his business empire. The election results in Texas, where both companies are registered, are causing particular concern: Democrats have secured key positions there, and the market fears tighter regulation of artificial intelligence. The party’s victory in both chambers of Congress creates an additional risk—in part due to potential uncertainty surrounding the merger of Tesla and SpaceX, which many investors fear.
“Tesla and SpaceX are essentially ‘two for the price of one’ as the market tries to reassess the risk of a significant slowdown in data center construction,” said Joe Gilbert, portfolio manager at Integrity Asset Management. “Momentum is a powerful force that works both ways, and right now we’re seeing a flight from assets in the tech sector until there are signs of a turnaround.”
16:49 CET: Thursday could be the worst day since June for the Philadelphia Stock Exchange Semiconductor Index (SOX), according to Bloomberg. The index has already lost more than 9%.
Among individual stocks, Nvidia shares took a hit: at one point, they were down nearly 8%, marking their worst intraday performance since April 2025. Shares of Advanced Micro Devices fell by more than 15%, Micron Technology by nearly 15%, and Broadcom and Intel by 8%. Shares of Qualcomm and Arm Holdings fell by 12%.
The decline affected more than just chipmakers. Shares of storage manufacturers Western Digital and Seagate Technology fell by more than 15%.
Outside the technology sector, market trends were mixed. For example, shares of the advertising platform AppLovin soared 30% after its earnings exceeded expectations.
4:55 p.m. CET: The sell-off in the stock market is gaining momentum. The Nasdaq Composite Index, which has a high proportion of technology companies, is down 5.3%. Since reaching its peak in September, the index has lost more than 10%, which technically constitutes a correction, according to CNBC. The broad-market S&P 500 index is down 3.2%, and the Dow Jones Industrial Average is down 2.1%.
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This article was AI-translated and verified by a human editor
