Wall Street plunges as Nasdaq enters correction, Dow and S&P 500 suffer heavy losses

Wall Street experienced a severe selloff on Thursday, with the tech-heavy Nasdaq plunging over 5% into correction territory, more than 10% below its record high from last month. The Dow Jones fell 3.08% and the S&P 500 dropped 4%. The massive liquidation was driven by fears that the Democrats' sweeping victory in the US midterm elections will slow artificial intelligence investments through stricter regulations. The VIX volatility index surged nearly 10 points to 26.26, while semiconductor stocks crashed, with Nvidia and Broadcom down over 7% and Qualcomm plunging more than 12%. Analysts at UBS estimate about 30% of planned US data center capacity for 2028 could be at risk due to potential construction delays. Investors are shifting to defensive sectors like consumer staples, though the selloff reflects growing concern that massive AI capital expenditures may not yield sufficient returns.