🔴📉U.S. stocks had their worst day since April 2025 yesterday. The S&P 500 shed 4.4%, the Dow Jones lost 3.4%, and the Nasdaq plunged 5.5%.
The Nasdaq has now entered correction territory, sitting nearly 12% below its all-time high and falling below its 200-day moving average for the first time since April. In a single session, it erased the entire post-election rally from Wednesday, its strongest in three months.
Companies tied to the construction of AI data centers fell the most. $AMD shed 17.3%, $CRWV 9.8%, and $GEV 7.5%. $NVDA lost 9.3% and dragged the index down more than any other stock. All 11 S&P 500 sectors ended lower. Going against the trend was $APP, which gained 31%.
What was behind the sell-off? Democrats did well in Tuesday’s congressional elections. This raises the possibility that the government could slow or temporarily halt data center construction, as voters are skeptical of them because of rising electricity prices. Add to that the high cost of financing new projects and investors’ fears that AI stock valuations have become overheated.
Are you taking advantage of lower prices?