The tech-heavy Nasdaq Composite plunged by as much as 5.5% Thursday as investors weighed whether Democrats’ gains in the midterm elections could lead to a slowdown in the massive data center buildout.
The Nasdaq dipped into correction territory, trading down more than 10% from its record high on October 6 and on pace for the worst day in five months. It’s a sharp reversal after Wednesday’s historic post-midterm rally with the Nasdaq gaining 1.44%.
While the Nasdaq rose Wednesday, underneath the surface, shares of semiconductor chipmakers and companies involved in the AI data center buildout were falling. That selling pressure intensified on Thursday, dragging the index down sharply.
