Nasdaq records deepest one-day drop in 19 months
Chipmaker stocks declined amid concerns that Democratic control of the US Congress could lead to stricter artificial intelligence regulations.
The Nasdaq Composite fell 1,421.50 points, or 5.46 per cent, to end at 24,315.02 on Thursday, marking its largest single-day decline in 19 months, according to Moneycontrol.
The drop followed Democratic victories in the US midterm elections, which raised fears that tighter AI regulations could slow infrastructure development. This occurred after Democrats won control of the US Congress and in states where opposition to new data centres has increased.
In the semiconductor sector, Qualcomm shares fell after the company missed Wall Street estimates for fourth-quarter smartphone chip sales. Jed Ellerbroek, portfolio manager at Argent Capital Management, said the moves felt like a capitulation phase for semiconductor stocks, though he suggested the magnitude was outsized.
Other market movements included the S&P 500 losing 331.94 points, or 4.32 per cent, to close at 7,353.65 points, and the Dow Jones Industrial Average dropping 1,842.69 points, or 3.45 per cent, to 51,513.43.
Tesla and SpaceX also saw their shares drop. Meanwhile, Cleveland Federal Reserve President Beth Hammack and Richmond Fed chief Thomas Barkin suggested the possibility of future interest rate hikes in comments made on Thursday.
Market participants are now looking toward the US October nonfarm payrolls data due on Friday. Traders currently expect the Federal Reserve to hike rates next month following a hike in September.
