Stock market today: Nasdaq plunges 5% amid chip stock wipeout, Dow and S&P 500 erase post-election rally gains
The Nasdaq plunged 5 percent in a dramatic market reversal, wiping out gains from the post-election rally that followed a Democratic sweep of the Senate and House in the November midterm elections. The Dow Jones Industrial Average and S&P 500 also erased their post-election gains during the broad downturn. A sharp selloff in semiconductor and artificial intelligence stocks weighed heavily on major indexes, dragging down Wall Street script expectations and causing double-digit drops for some large public companies.
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- ✓ The Nasdaq plunged 5 percent amid a chip stock wipeout, causing the Dow and S&P 500 to erase gains from the post-election rally.
- ✓ Markets were previously dominated by the November midterm election results where Democrats swept both the Senate and the House.
What changed
Major stock indexes reversed their post-election rally gains as a chip stock wipeout dragged down the Nasdaq by 5 percent.
Live updates
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Nasdaq Plunges 5 Percent Amid Chip Stock Wipeout
The Nasdaq plunged 5 percent in a dramatic market reversal, wiping out gains from the post-election rally that followed a Democratic sweep of the Senate and House in the November midterm elections. The Dow Jones Industrial Average and S&P 500 also erased their post-election gains during the broad downturn. A sharp selloff in semiconductor and artificial intelligence stocks weighed heavily on major indexes, dragging down Wall Street script expectations and causing double-digit drops for some large public companies.
Why it matters
The sharp market downturn follows a major political shift from the November midterms where Democrats swept both chambers of Congress. Investors are now forced to rethink the path of interest rates and economic policies under the new legislative balance. The sudden rout disrupted the post-election rally and highlighted market vulnerability to shifts in technology and chip sector valuations.
What is confirmed
- The Nasdaq plunged 5 percent amid a chip stock wipeout, causing the Dow and S&P 500 to erase gains from the post-election rally.
- Markets were previously dominated by the November midterm election results where Democrats swept both the Senate and the House.
What to watch next
- Further movements in semiconductor and artificial intelligence stock prices, particularly Nvidia and related tech equities.
- Additional market adjustments regarding the path of interest rates following the Democratic congressional sweep.
confidence 90%Sources used for this update (22)
- www.schwab.com — Schwab Market Update | Charles Schwab
- www.cnbc.com — Stock Market News - CNBC
- www.investing.com — Investing.com - Stock Market Quotes & Financial News
- www.cnn.com — Stock Market Data - US Markets, World Markets, and Stock Quotes
- finance.yahoo.com — Yahoo Finance - Stock Market Live, Quotes, Business & Finance...
- stockanalysis.com — StockAnalysis.com - Free Online Stock Information for Investors
- finance.yahoo.com — Markets: World Indexes, Futures, Bonds, Currencies, Stocks & ETFs...
- www.msn.com — MSN Money | Stock Market Quotes, Business, Economic & Financial...
- dw.com — From data centers to tariffs: What the Democrats' huge midterms win means for the US economy and Trump
- The Economist — What markets make of the midterms
- Yahoo Finance — Stock market today: Dow, S&P 500, Nasdaq plunge in dramatic reversal, giving back post-election rally gains
- Bloomberg.com — Wall Street’s Script Gets Flipped by Post-Election Rout
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