US tech selloff erases post-midterm gains

Nasdaq drops 5% as a chip selloff bleeds into other sectors of the economy. The tech-heavy Nasdaq dropped 5% Thursday, erasing post-midterm gains and entering correction territory, as a chip selloff bled into other sectors of the economy. Nasdaq 100 stocks shed roughly $1.8 trillion as investors fretted over the possibility that Democrats’ midterm gains would slow the AI buildout, as tech-critical candidates swept to power in Texas, Georgia, and Ohio, accounting for some 40% of planned US data center capacity. “This is a true panic” that is “100% about the chip stocks and the potential slowdown in the AI trade,” an analyst told The Wall Street Journal. “We expect that the AI boom will remain on track,” JPMorgan analysts wrote, “but may become costlier, slower, and more consolidated in the coming years.”