Dow tumbles 1,500 points, erasing its postelection rally; Nasdaq plummets 5%: Live updates
U.S. stocks reversed Wednesday's sharp gains on Thursday as the Dow Jones Industrial Average fell roughly 1,600 points and the Nasdaq Composite dropped about 5.5%, pushing the tech-heavy index into correction territory. The S&P 500 shed 4% and lost $2.9 trillion in market value, a single-day record, while Nasdaq firms lost $2.5 trillion. Chip and AI-related shares led the decline for a second straight session. The selloff erased the postelection rally that had lifted the Dow 3% on Wednesday, its best day since April 2025, after Democrats swept Congress and oil prices fell.
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- ✓ The Dow Jones Industrial Average surged 3% on Wednesday, its best day since April 2025, after Democrats swept Congress and oil prices fell.
- ✓ On Thursday the Dow fell approximately 1,600 points, erasing the Wednesday rally.
- ✓ The Nasdaq Composite fell about 5.5% on Thursday, entering correction territory.
- ✓ The S&P 500 dropped 4% and shed $2.9 trillion in market value, a single-day record; Nasdaq companies lost $2.5 trillion, also a record.
What changed
Thursday's session wiped out Wednesday's postelection gains, with the Dow falling ~1,600 points and the Nasdaq dropping ~5.5% to enter correction territory, driven by fears of Democratic anti-AI and data-center policies.
Live updates
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Dow erases post-midterm rally with 1,600-point plunge; Nasdaq enters correction
U.S. stocks reversed Wednesday's sharp gains on Thursday as the Dow Jones Industrial Average fell roughly 1,600 points and the Nasdaq Composite dropped about 5.5%, pushing the tech-heavy index into correction territory. The S&P 500 shed 4% and lost $2.9 trillion in market value, a single-day record, while Nasdaq firms lost $2.5 trillion. Chip and AI-related shares led the decline for a second straight session. The selloff erased the postelection rally that had lifted the Dow 3% on Wednesday, its best day since April 2025, after Democrats swept Congress and oil prices fell.
Why it matters
Wednesday's rally was driven by relief over decisive Democratic midterm victories and lower oil prices. Thursday's reversal reflects investor anxiety that new Democratic governors and congressional majorities will impose restrictions on data-center expansion and AI infrastructure, threatening the sector's growth outlook. The Nasdaq's slide into correction, a 10% drop from recent highs, signals a rapid shift in sentiment toward the market's leading theme.
What is confirmed
- The Dow Jones Industrial Average surged 3% on Wednesday, its best day since April 2025, after Democrats swept Congress and oil prices fell.
- On Thursday the Dow fell approximately 1,600 points, erasing the Wednesday rally.
- The Nasdaq Composite fell about 5.5% on Thursday, entering correction territory.
- The S&P 500 dropped 4% and shed $2.9 trillion in market value, a single-day record; Nasdaq companies lost $2.5 trillion, also a record.
- Chip and AI stocks led declines for a second consecutive session on fears of Democratic anti-AI policy.
Still unconfirmed
- New Democratic governors may pause data-center projects, triggering a looming data-center reckoning.
What to watch next
- Details of any proposed Democratic legislation or executive actions targeting AI and data-center expansion
- Earnings guidance from major chip and cloud companies addressing regulatory risk
- Federal Reserve policy signals that could amplify or offset the political-driven selloff
confidence 92%Sources used for this update (15)
- www.cnbc.com — Stock market today: Live updates - CNBC
- CNBC — Stock futures are little changed after big rally following Democrats' decisive midterm wins
- WSJ — Stock Market Today: AI Stocks Under Pressure While Dow Futures Rise
- CNN — Nasdaq plunges into correction territory as midterm results raise fresh questions about AI boom | CNN Business
- The Guardian — Nasdaq heading for worst day in 18 months as Wall Street sustains widespread losses
- MarketWatch — Is this ‘the big one’ for the stock market? Wall Street sounds off as tech plunges.
- justthenews.com — Stocks tumble, Dow loses more than 1,800 points over AI fears ...
- economictimes.indiatimes.com — Stock markets crash today: Stock markets down today: Dow ...
- www.newsbreak.com — Dow tumbles 1,600 points, erasing its postelection rally ...
- deadline.com — Stocks Tank, Erasing Post-Election Rally - Deadline
- nypost.com — Wall Street sees biggest market cap drops ever after midterm ...
- finance.yahoo.com — Dow plunges 1,800 points, wiping out gains from midterm ...
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