Wall Street's worst day since 2020 as tech stocks plunge on Democratic AI scrutiny fears

Wall Street suffered its worst session since April 2025 on Thursday, as investors fled technology stocks over fears that Democrats, who won control of Congress, will tighten scrutiny on artificial intelligence. Chipmakers led the declines. The S&P 500 fell 4.36% to 7,353.73 points, the Dow Jones dropped 3.44% to 51,523.06 points, and the Nasdaq Composite plunged 5.52% to 24,315.00 points. The Nasdaq 100 fell over 6%, its worst day since March 2020, erasing $2.3 trillion in market value. The PHLX chip index tumbled over 12%, with Intel, Nvidia, Micron, Marvell, and AMD dropping between 9% and 17%. Democrats are expected to increase oversight of Silicon Valley, which was largely spared during Donald Trump's first two years in office, potentially targeting AI data centers and slowing infrastructure growth. The VIX volatility index rose above 26 points, its biggest jump in nearly two years, as analysts warned that market valuations were driven by euphoria rather than fundamentals.