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U.S. stocks reversed Wednesday’s post-election rally on Thursday, led by a sharp sell-off in chip and AI-related shares. The Dow fell 2.2%, the S&P 500 dropped 3.3% and the Nasdaq lost 5% in the latest reported figures; the semiconductor index sank 11%. The report described the Nasdaq as on track to close in correction territory, but did not confirm its final closing level.
U.S. stocks reversed Wednesday’s post-election rally on Thursday as investors sold chip and other technology shares, with the Dow down 2.2%, the S&P 500 down 3.3% and the Nasdaq down 5% in the latest figures reported by Yahoo Finance. The sell-off erased the prior day’s gains; the Nasdaq was described as on track to close in correction territory, though the report did not provide its final closing level.
The decline gathered pace after a mixed start to the session. Yahoo Finance reported that the Dow initially rose 0.6%, while the S&P 500 edged down 0.3% and the Nasdaq fell 1%. Chip and data-center stocks were among the early laggards as investors weighed possible effects of the Democrats’ election victory on AI infrastructure spending and regulation.
The PHLX Semiconductor index fell 11% in the report’s latest market update. Nvidia, Micron and other chip companies slid, with an earlier update citing losses of more than 6% for Nvidia, 12% for Micron and 13% for AMD. The report estimated that the earlier technology and chip sell-off had erased about $2 trillion in market capitalization; that estimate referred to the stocks covered in that update, not a final measure for the entire market.
Market volatility rose alongside the losses. The CBOE Volatility Index, commonly called Wall Street’s fear gauge, jumped more than 65% to as high as 27.45, according to the report, which said strategist Shay Boloor of Futurum Equities described it as the biggest one-day jump in more than two years. The article’s market figures were intraday updates, so the quoted index moves should not be treated as confirmed closing results.
Chip Losses Drive a Broader Reversal
The reversal matters because it shows how quickly market sentiment shifted after Wednesday’s rally. The decline was concentrated in semiconductor, AI and technology shares, which had helped drive recent market performance. Losses in those companies pulled the Nasdaq down particularly sharply and contributed to the rise in the volatility index.
Investors were also trying to interpret what a Democratic sweep of both chambers of Congress could mean for policy, including AI-related spending and regulation. The source reports that investors were assessing those possibilities; it does not establish that a particular policy decision caused the market drop. Thursday’s price action is evidence of uncertainty and repricing, not proof of what future policy or company earnings will be.
The news extended beyond stocks. Bitcoin fell below $76,000, down more than 5% in the cited update, while oil prices rose, with Brent near $97 a barrel and U.S. benchmark WTI around $90. Those moves reflected pressure across different markets, though the source does not show that they shared one cause.
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Election Rally Meets Policy Uncertainty
Wednesday’s rally followed the midterm election, in which Democrats won both chambers of Congress, according to the report. The advance reflected relief among some investors that election uncertainty had eased, but market participants continued to debate which industries might benefit or face greater scrutiny under the changed balance of power. Thursday’s reversal shows that the initial rally did not settle those questions.
Oil offered a separate source of uncertainty. Prices rebounded after falling Wednesday amid questions over whether President Donald Trump would pursue a deal with Iran to end the war in the Middle East. Vice President JD Vance connected the election loss to that conflict in a post on X, as quoted by Yahoo Finance. The report also noted that an October layoff-plans survey from Challenger, Gray & Christmas showed plans at their lowest level since 2023, ahead of Friday’s employment report. Those developments formed part of the day’s economic backdrop but do not, by themselves, explain the stock sell-off.
“It’s off the table for the lame duck session.”
— Brian Gardner, Stifel’s chief Washington policy strategist, as quoted in a briefing with reporters
Closing Levels and Policy Remain Open
The source provides changing intraday market snapshots, not a complete set of confirmed closing prices. It says the Nasdaq was on track to close in correction territory, but does not report whether that happened by the end of trading. The precise closing losses, the duration of the technology sell-off and whether the volatility spike persisted are not established in the supplied material.
The report also does not identify a single confirmed catalyst for the reversal. It links the decline to selling in AI and chip stocks and describes investors as weighing election-related policy questions, but does not show that a specific policy announcement triggered the fall. The eventual direction of AI spending, regulation, oil policy and market reaction remains uncertain.
Friday Jobs Data in Focus
Investors were looking ahead to the employment report scheduled for Friday, following the Challenger, Gray & Christmas survey on company layoff plans. The supplied report does not give a forecast for the jobs figures or specify how markets would respond.
Market participants will also continue to assess company earnings and policy signals after the election. The source listed results from companies including Duke Energy, Airbnb and Lumentum, while reporting that AppLovin’s quarterly revenue, earnings and forecast exceeded analyst expectations. Further trading updates and official closing data are needed to establish whether Thursday’s sharp declines continued beyond the intraday snapshots.
Key Questions
Why did U.S. stocks fall on Thursday?
Yahoo Finance attributed the sell-off mainly to losses in AI, chip and other technology stocks, while investors also weighed possible implications of the Democrats’ election victory. The report did not identify one confirmed trigger.
How much did the major indexes fall?
The latest figures in the report showed the Dow down 2.2%, the S&P 500 down 3.3% and the Nasdaq down 5%. These were reported market moves, not confirmed closing results.
Did the Nasdaq close in correction territory?
The report said the Nasdaq was on track to close in correction territory. It did not provide a final closing level, so the supplied information does not confirm whether the index ended the session there.
What happened to semiconductor stocks?
The PHLX Semiconductor index fell 11% in the latest cited update. Earlier in the session, Yahoo Finance reported losses of more than 6% for Nvidia, 12% for Micron and 13% for AMD.
What market event were investors watching next?
The report pointed to Friday’s employment report as the next major economic release on the calendar. It did not include the report’s results, which were not yet available in the supplied material.
Source: finance.yahoo.com
