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● LIVE Updated 12m ago · 16 sources tracked

Stocks Erase Post-Midterm Elections Rally, Dragged Down by Tech

Wall Street suffered a severe selloff following the midterm elections, erasing previous post-election gains as artificial intelligence and chip stocks collapsed. The Nasdaq plunged 5 percent and entered correction territory, while the S&P 500 fell over 3 percent in its worst post-midterm day since 1896. The Magnificent 7 group of tech giants lost $1 trillion in value, and more than $2 trillion was wiped from the S&P 500 overall. Investors panicked over the political shift, fearing that Democratic gains could hamper the rapid infrastructure expansion required for artificial intelligence data centers.

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⚡ Key Developments & Real-Time Context
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  • ✓ The Nasdaq plunged 5 percent and entered correction territory following a chip stock wipeout.
  • ✓ The S&P 500 and Nasdaq Composite dropped over 3 percent and 5 percent respectively.
  • ✓ The Magnificent 7 lost $1 trillion during Thursday's tech stock plunge.
  • ✓ More than $2 trillion was erased from the S&P 500 as memory, chip, and AI infrastructure stocks sold off.
🛡️ Source Corroboration: 16 independent reporting domains (100% confidence) ⏱ Read time: ~2 min

What changed

Stock futures diverged and chip selloffs extended into a second consecutive day following Thursday's historic market plunge.

Live updates

  1. US Stocks Plunge as Tech Selloff Wipes Out Post-Midterm Rally

    Wall Street suffered a severe selloff following the midterm elections, erasing previous post-election gains as artificial intelligence and chip stocks collapsed. The Nasdaq plunged 5 percent and entered correction territory, while the S&P 500 fell over 3 percent in its worst post-midterm day since 1896. The Magnificent 7 group of tech giants lost $1 trillion in value, and more than $2 trillion was wiped from the S&P 500 overall. Investors panicked over the political shift, fearing that Democratic gains could hamper the rapid infrastructure expansion required for artificial intelligence data centers.

    Why it matters

    The sudden market downturn follows the midterm elections, which resulted in significant Democratic gains that investors worry will alter regulatory and policy priorities for the tech sector. Artificial intelligence shares and chipmakers bore the heaviest brunt of the panic, extending losses into a second day. Despite the massive wipeout, executives from major technology firms expressed confidence in the ongoing growth trajectory of the artificial intelligence industry.

    What is confirmed

    • The Nasdaq plunged 5 percent and entered correction territory following a chip stock wipeout.
    • The S&P 500 and Nasdaq Composite dropped over 3 percent and 5 percent respectively.
    • The Magnificent 7 lost $1 trillion during Thursday's tech stock plunge.
    • More than $2 trillion was erased from the S&P 500 as memory, chip, and AI infrastructure stocks sold off.

    Still unconfirmed

    • Democrats' midterm gains could result in a slowdown of AI data center buildouts.

    What to watch next

    • Traders await the upcoming payrolls report.
    • Further developments in the chip and AI stock selloff across global markets.
    Sources used for this update (18)
    1. www.post-gazette.com — Pittsburgh Post-Gazette
    2. www.bitget.com — Propland Price Prediction , PROPrice Prediction 2025
    3. www.tradingkey.com — Today’s Market Recap: OpenAI Revenue Concerns; Nasdaq Falls 1.25%, AAOI Drops 13.58%, Brent Gains 4.07%
    4. www.thehindubusinessline.com — Stock Market Today Highlights, October 28: Sensex declines 353 points dragged by Reliance, IT stocks, rising crude oil prices
    5. CNN — Nasdaq plunges into correction territory as midterm results raise fresh questions about AI boom | CNN Business
    6. NBC News — Tech stocks plunge on worries about AI and Democrats’ midterm landslide
    7. Yahoo Finance — Stock market today: Nasdaq plunges 5% amid chip stock wipeout, Dow and S&P 500 erase post-election rally gains
    8. Bloomberg.com — US Stock Futures Diverge as Chip Selloff Extends Into Second Day
    9. www.investmentnews.com — Nasdaq enters correction as AI stocks sink after midterm ...
    10. The New York Times — Stocks Erase Post-Midterm Elections Rally, Dragged Down by Tech
    11. CNBC — Magnificent 7 loses $1 trillion. The most eye-popping stats from Thursday's tech stock plunge
    12. NPR — AI shares sink after blue wave
    confidence 100%
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