In brief
Technology stocks slumped most of the day as a wave of AI‑related and semiconductor shares dumped out, sending the three major U.S. indexes hurt by 3‑5%. The VIX spiked to its highest level since March, and the semiconductor sector fell 12% in the PHLX SOX index, the most steep decline since 2020.
U.S. stocks fell sharply on Thursday as a mass sell‑off in semiconductor and artificial‑intelligence related shares hammered technology stocks. The Dow" 3.4% dropped 1,833.06 points to 51,523.06, the S&P 500 "4.4%" fell 334.89 points to 7,353.73, and the Nasdaq "5.5%" sank 1,421.52 points to 24,315.
All 11 sectors of the S&P 500 ended lower, led by information technology, followed by consumer discretionary and industrials. Semiconductor stocks were the hardest hit as analysts cited concerns that a Democratic mid‑term victory could trigger tighter restrictions on data‑center building and slow the surge of AI infrastructure.
Investor sentiment deteriorated sharply, with the Cboe Volatility Index (VIX) climbing 69.66 percent to close at 28.18, its highest level since late March.
The PHLX "SOX" semiconductor index slid 12%, the steepest one‑day decline since the 16% rout on March 16, 2020.
Jay Hatfield, chief executive of Infrastructure Capital Advisors, said the following:
"This is a true panic. This is 100 percent about the chip stocks and the potential slowdown in the AI trade,"
U.S. President Donald Trump blamed Democrats for the market decline, calling it a "sad thing to watch" and describing the sell‑off as "one of the Worst Days in History based on the results of the Election."
Bloomberg reported that the sell‑off in chipmakers and AI‑related stocks quickly wiped out earlier gains in U.S. equities, with losses gradually spreading to other sectors, underscoring the breadth of the rout.
