Wall Street slumps as sharp tech losses put Nasdaq on course for correction
SPY•U.S. stocks fell sharply, with the Nasdaq down 3.09% and poised to enter correction territory as chip and data-center-related shares declined. Qualcomm fell 9% after missing fourth-quarter smartphone chip sales estimates, while AppLovin rose 32% after beating third-quarter profit estimates.
1. Technology shares lead losses
At 9:57 a.m. ET, the Dow fell 0.66%, the S&P 500 lost 1.66% and the Nasdaq dropped 3.09%. Qualcomm slid 9% after its fourth-quarter smartphone chip sales missed estimates amid sluggish demand and declining Apple-related revenue; the semiconductor index fell 7.1%.
2. AI infrastructure stocks retreat
Data-center operators IREN, Hut 8 and Applied Digital fell between 6% and 11%, while CoreWeave dropped 9.3% and Nebius Group fell 13.4%. GE Vernova, Constellation Energy and Dell also declined. An analyst said the election result could bring scrutiny to the AI buildout.
3. Earnings and data ahead
Snap fell 12% after missing third-quarter revenue estimates, while AppLovin gained 32% after beating third-quarter profit estimates. Investors were awaiting the U.S. October non-farm payrolls report due Friday; traders expected the Federal Reserve to raise rates next month following its September rate hike.
