Nasdaq drops 5%, confirms correction
SPY•The Nasdaq closed more than 5% lower, 11.9% below its October 6 record, confirming a correction. The S&P 500 fell more than 4% and the Dow more than 3%, as all S&P 500 sectors declined.
1. Broad market selloff
The Nasdaq led a broad decline, with all three major U.S. stock indexes posting their biggest daily percentage drops since April 2025. The S&P 500 fell more than 4% and the Dow more than 3%.
2. Technology leads losses
Technology shares fell more than 7%, the largest drop among S&P 500 sectors. The semiconductor index recorded its biggest daily percentage decline since March 2020, while Qualcomm shares fell 9.5% after a disappointing quarterly report.
3. AI concerns weigh
The selloff followed a post-election rally. The article said fears of tougher AI regulation and a slowdown in data-center construction weighed on the market. Michael O’Rourke of JonesTrading said the data-center buildout slowdown was the key theme likely to persist.
