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US stocks reversed Wednesday’s post-election rally on Thursday, with technology and semiconductor shares leading a broad decline. The Dow fell 2.2%, the S&P 500 lost 3.3%, and the Nasdaq dropped 5% in the latest Yahoo Finance update; the semiconductor index fell 11%. The causes and market implications remain in flux as investors weigh election outcomes, AI-related concerns and geopolitical uncertainty.
US stocks fell sharply Thursday, reversing the previous session’s post-election rally as investors sold technology and semiconductor shares. In a Yahoo Finance update at 5:37 p.m. GMT+1, the Dow Jones Industrial Average was down 2.2%, the S&P 500 had fallen 3.3%, and the Nasdaq Composite was off 5%, with the losses wiping out Wednesday’s gains.
The sell-off was concentrated in chipmakers. The PHLX Semiconductor Index fell 11%, while Nvidia, Micron and other chip stocks declined. Earlier in the session, Yahoo Finance reported that Nvidia shares were down more than 6%, Micron more than 12% and AMD more than 13%. Those figures describe an earlier market update and may not match the indexes’ final closing levels.
The Nasdaq’s 5% decline put it on track to close in correction territory, according to the report. That was a description of its position during trading, not confirmation that the index had finished the session in a correction. The CBOE Volatility Index, Wall Street’s commonly watched volatility gauge, rose as much as 65% to 27.45. Futurum Equities chief market strategist Shay Boloor described the move as the index’s largest one-day jump in more than two years.
Oil prices also climbed amid uncertainty over whether President Donald Trump would pursue a deal with Iran to end the Middle East war. Brent crude traded around $97 a barrel, while US benchmark West Texas Intermediate was near $90. Separately, a report from Challenger, Gray & Christmas said announced layoff plans in October fell to their lowest level since 2023, as companies focused on retaining employees. Investors were also looking ahead to Friday’s employment report.
The reversal matters because it erased the immediate gains investors had made after Tuesday’s midterm election results. The sharp decline in chip and AI-linked shares suggests investors were reassessing expectations for companies tied to AI infrastructure, as well as the possible effects of a changed balance of power in Congress. The market report described those issues as factors investors were weighing; it did not establish that the election alone caused the sell-off.
The increase in the volatility index and the simultaneous retreat in major stock indexes point to a rapid shift in market sentiment during the session. Higher oil prices added another uncertainty for investors, while the direction of energy prices can affect household costs and company expenses. The available report does not quantify the expected economic impact of Thursday’s moves.
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Election Gains Give Way to Selling
Democrats won both chambers of Congress in Tuesday’s midterm elections, according to the Yahoo Finance report. US stocks rallied Wednesday as investors responded to the result, but Thursday’s trading reversed those gains. The report said investors were still sorting through potential winners and losers from the change in congressional control, including possible effects on the economy, AI spending and regulation.
The session’s direction changed as it unfolded. US stocks opened mixed: the Dow initially rose while the S&P 500 and Nasdaq edged lower. Tech stocks then weakened, and a later Yahoo Finance update described roughly $2 trillion in market value erased across stocks during the decline. That estimate was tied to the intraday sell-off, not a final closing calculation for the market.
Cryptocurrency prices also retreated alongside stocks. Bitcoin briefly fell below $76,000 after rising above $80,000 Wednesday, then stabilized above $76,000, the report said. The article cited lingering market concerns after a reported $6.3 billion Binance hack and uncertainty about US crypto policy. Stifel policy strategist Brian Gardner said the proposed Clarity Act was unlikely to advance before the end of the year.
Closing Levels and Causes Remain Open
The supplied report includes intraday updates and a 5:37 p.m. GMT+1 market summary, but does not provide confirmed closing values for the three major indexes. The Nasdaq was described as on track to enter correction territory; whether it closed there is not established in the material.
It is also unclear how much of the decline reflected election-related policy concerns, worries about AI and chip valuations, or other trading factors. The report describes these as issues investors were considering, rather than confirming a single cause. It does not state that the White House had committed to negotiations with Iran or give further details about the reported Binance hack.
Friday Jobs Data in Focus
Investors were due to receive the next significant economic signal with Friday’s employment report. The October layoff-plans data from Challenger, Gray & Christmas indicated fewer announced layoffs than in recent years, but it is not a substitute for the broader jobs figures due the following day.
Markets will also continue to respond to corporate results and guidance, including reports scheduled from companies such as Duke Energy, Airbnb and Lumentum. The next sessions may show whether Thursday’s declines persist or whether investors return to the shares that led Wednesday’s rally. The supplied material does not establish how markets will respond or provide a confirmed government policy timetable on Iran, AI regulation or crypto legislation.
Key Questions
How much did the major US indexes fall?
In Yahoo Finance’s update at 5:37 p.m. GMT+1, the Dow was down 2.2%, the S&P 500 was down 3.3%, and the Nasdaq was down 5%. The report does not give their confirmed closing levels.
What led the decline?
Chip and AI-related shares were among the biggest decliners. Yahoo Finance said investors were weighing AI-related concerns and the implications of the election result, but the report does not identify a single confirmed cause for the market-wide drop.
Did the Nasdaq close in correction territory?
The report said the Nasdaq was on track to close in a correction after falling 5%. It does not confirm that the index ended the session in correction territory.
What were oil prices doing?
Brent crude traded around $97 a barrel and US benchmark WTI around $90, as investors considered uncertainty over a possible deal with Iran to end the Middle East war. The report did not say that a deal had been reached or that negotiations were confirmed.
Source: finance.yahoo.com
