Nasdaq drops nearly 5% as tech losses mount; S&P 500 falls 3%

U.S. stocks fell sharply on Thursday, with the Nasdaq entering correction territory as losses in chip and data center stocks weighed on the market, one day after Democratic midterm election victories had driven broad gains. The Dow Jones Industrial Average fell 2.30% to 52,128.4 points, the S&P 500 lost 3.18% to 7,443.58 points, and the Nasdaq Composite dropped 4.89% to 24,486.58 points. Qualcomm slid 9% after missing Wall Street estimates for fourth-quarter smartphone chip sales due to weak demand and lower Apple-related revenue. The broader chip index fell 7.1%, with Nvidia, AMD, Intel, and Marvell Technology posting heavy losses. Chip and AI infrastructure stocks fell further after the Democratic victory, including in key data center states where public opposition to rapid expansion is growing. Analysts suggested potential scrutiny of aggressive AI expansion, with data center operators IREN, Hut 8, and Applied Digital dropping between 6% and 11%, while Neoclouds, CoreWeave, and Nebius Group lost 9.3% and 13.4%.