US stocks slide as chip losses hit Nasdaq, Tesla

US stocks fell sharply Thursday, with the Nasdaq near correction territory, as steep losses in chip and data center-related stocks outweighed the prior day's rally following the Democrats' sweeping midterm election victory. Qualcomm dropped 9% after missing fourth-quarter smartphone chip sales estimates on sluggish demand and declining Apple-related revenue. The broader semiconductor index fell 7.1%, with Nvidia, AMD, Intel, and Marvell leading declines, while data center operators IREN, Hut 8, and Applied Digital fell 6% to 11%. Tesla tumbled 9.5% and SpaceX eased 6.7%, extending losses after Elon Musk spent nearly half a billion dollars backing Republican candidates. Analysts suggested the election outcome could prompt scrutiny of the AI buildout, with focus on Friday's October non-farm payrolls data as traders expect a Fed rate hike next month.