US Stocks Routed as Nasdaq 100 Sheds $2.3 Trillion in Market Value During Sharp Selloff

Deep News11-06

After the midterm elections, the decline in US chip stocks intensified dramatically, with speculation running rampant that Democrats would crack down on the artificial intelligence industry in Congress. Investors rushed to dump technology shares, causing the broader market to collapse.

The S&P 500 tumbled 4.4%, marking its largest single-day drop since April 2025. The Nasdaq 100 plunged even further, falling 6.4% and wiping out $2.3 trillion in market value in a single day. The Philadelphia Semiconductor Index, which is packed with chip giants, plummeted 12%. Qualcomm and Arm Holdings Plc came under pressure due to disappointing financial guidance. Tesla and SpaceX each fell at least 9%. Chip manufacturers tumbled one after another.

Wall Street's selling wave easily reversed Wednesday's gains. Michael O'Rourke of JonesTrading said the slowdown in data center construction due to political changes is real, and the earnings forecasts underpinning bullish valuations are no longer valid. "Investors have no idea how these estimates will be revised," he said. "So they are all reducing risk until the situation becomes clear again, but clarity will not arrive anytime soon."

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