SPDR S&P 500 ETF falls 1.9% as chip stocks slide on AI spending concerns

The SPDR S&P 500 ETF Trust fell 1.9% in morning trading to $752.32, reversing Wednesday's post-election rally as investors rotated out of semiconductor and AI infrastructure stocks. The decline was driven by concerns that full Democratic control of Congress could lead to stricter oversight of Big Tech energy use, data center permitting delays, and slower AI capital spending. Weak earnings from Qualcomm and Arm Holdings, which missed revenue expectations, extended chip sector losses to a second session, with Nvidia, Marvell, and Intel also falling. Economic data was mixed, with stronger-than-expected productivity and jobless claims offset by disappointing ISM Services and PMI readings. The S&P 500 fell 1.9%, the NASDAQ dropped 3.3%, while the Dow declined a more modest 0.9%, supported by defensive sectors.