US Tech Shares Sink

The S&P 500 tumbled 2.6%, while the Nasdaq plunged 4.1%, officially entering correction territory. The Dow Jones also shed more than 800 points on Thursday, wiping out the previous session’s gains, as a sharp sell-off in technology stocks weighed heavily on the broader market. The rotation away from AI-related and technology stocks continued, amid concerns that the Democrats’ victory could pave the way for tighter regulation of US data centres and AI, potentially dampening demand for semiconductors. Consumer discretionary, industrials and communication services stocks also came under significant pressure, while consumer staples proved more resilient, outperforming the broader market.