The Nasdaq Composite index closed Thursday's (5) session with a drop of 5.52%, at 24,315 points, recording its biggest daily decline in about 19 months. The selloff in technology stocks, especially semiconductor makers tied to artificial intelligence, led the index to accumulate a loss of more than 10% since its October record high, entering technical correction territory.
Selling pressure hit the entire U.S. market. The S&P 500 fell 4.36%, to 7,353.73 points, while the Dow Jones Industrial Average lost 3.44%, ending the session at 51,523.06 points. It was the worst daily performance for the S&P 500 and Nasdaq since April 2025.
Chipmakers concentrate losses on Wall Street
Nvidia, one of the main suppliers of processors for artificial intelligence systems, recorded a 9.26% decline. AMD shares fell 17.26%, while Micron Technology shares lost approximately 17.5%. The Philadelphia Stock Exchange (PHLX) semiconductor index plunged more than 12%.
The selloff also reached companies directly involved in building and operating data centers. IREN and Applied Digital lost more than 14% each, while CoreWeave fell almost 10%, increasing pressure on companies associated with AI infrastructure expansion.
According to Reuters, investors expressed concern about possible restrictions on building new data centers after Democratic Party victories in the U.S. legislative elections on Tuesday (3).
Melissa Brown, global head of investment decision research at SimCorp, told Reuters that a possible slowdown in the expansion of this infrastructure could undermine the growth expectations that sustained the valuation of AI companies.
The move reflected a reassessment of stock prices, not operating losses realized by the companies. Although the new political composition has increased regulatory concerns, the restrictions discussed by investors do not yet represent federal measures approved or in effect.
