Dow Tumbles 1,833 Points and Nasdaq Enters Correction on AI Selloff

Wall Street gave back all of its post-election rally and more on Thursday as a deepening rout in artificial intelligence and semiconductor stocks dragged the Nasdaq Composite into formal correction territory.

Dow Loses 1,833 Points as Nasdaq Drops 5.5% Into Correction

After trading down 1,533 points, or 2.9%, roughly an hour before the closing bell, selling accelerated into the final minutes of trading. By the close, the Dow Jones Industrial Average tumbled 1,833 points, or 3.4%, completely erasing Wednesday's 1,570-point (3%) post-election surge, which had marked the market's strongest single-day gain since April 9, 2025.

The S&P 500 finished down 4.3% (after trading down 3.6% earlier in the afternoon), while the tech-heavy Nasdaq Composite sank 5.5% (after falling 4.5% intraday). Thursday's drop left the Nasdaq more than 10%—and roughly 11% at the close—below the all-time peak it set last month, placing the index in a market correction.

Nvidia, AMD, SanDisk, and Cloud Infrastructure Stocks Retreat

Semiconductor and AI infrastructure companies bore the brunt of the pullback as investors questioned whether hyperscaler capital expenditures will translate into near-term earnings:

• Nvidia: Closed down 9% (after trading down 8% intraday and falling 3.2% on Wednesday).
• Advanced Micro Devices (AMD): Plunged 17% at the close (down 14% intraday).
• SanDisk: Tumbled more than 22%.
• CoreWeave: Fell 8.9%.
• GE Vernova: Dropped 6.9% as data-center power generation plays cooled.
• Microsoft and Amazon: Declined more than 3% and more than 2%, respectively.

Bucking the downturn, mobile ad-tech platform AppLovin soared 29.4% after reporting stronger-than-expected quarterly profit and adding $3.2 billion to its stock buyback authorization, bringing its total repurchase program to $3.6 billion. Luxury accessories company Tapestry, parent of Coach, climbed 7.4% after raising its full-year outlook.

Treasury Yields Dip to 4.83% While Brent Crude Nears $98.29

In fixed-income markets, investors rotated into government bonds, pushing the yield on the 10-year U.S. Treasury down to 4.83% from 4.90% late Wednesday, 4.95% on election night, and more than 5.30% last month. In commodities, Brent crude oil rose 3.9% to settle at $98.29 per barrel.

Overseas equity benchmarks also closed lower: South Korea's Kospi index tumbled 5.3%, Japan's Nikkei 225 shed 1.8%, and London's FTSE 100 edged down 0.4% after the Bank of England and Governor Andrew Bailey raised interest rates for the first time in 3 years to counter inflation pressures.