Wall Street suffers worst day since April 3 as AI regulation fears hit chip stocks

Wall Street suffered its worst day since April 3, 2025, on Thursday, with major indices plunging after a Democratic victory in the midterm elections sparked concerns over future artificial intelligence regulation. The S&P 500 fell 4.36%, the Dow Jones dropped 3.44%, and the Nasdaq Composite lost 5.52%, confirming a technical correction. The selloff was led by chip stocks, with the Philadelphia Semiconductor Index crashing 12.79%, its biggest daily decline since March 2020. Nvidia fell 9.26%, Micron dropped 17.46%, and AMD lost 17.26%. Major tech companies also declined, with Microsoft down 3.62% and Meta sliding 3.96%, as investors worried about regulatory hurdles for AI infrastructure. The market reaction follows election results showing AI and data centers were a key voter concern, with 56% calling it a crucial issue and 76% opposing new data center construction. At least 33 US communities approved measures to restrict development, reflecting growing political backlash against the industry.