In brief
On Thursday, U.S. stocks fell sharply after a mass selloff in AI‑related and semiconductor shares. The Dow fell 1,833 points, the S&P 500 dropped 335 points and the Nasdaq plunged 1,422 points, while the VIX jumped to 28.18. Analysts blamed political uncertainty and fears of tighter restrictions on AI infrastructure.
On Thursday, November 5, U.S. stocks plunged in New York after a mass selloff of semiconductor and artificial‑intelligence shares sent the Dow, S&P 500, and Nasdaq into their steepest daily losses in months.
The Dow Jones Industrial Average fell 1,833.06 points, or 3.4 percent, to 51,523.06; the S&P 500 dropped 334.89 points, or 4.4 percent, to 7,353.73; and the Nasdaq Composite slumped 1,421.52 points, or 5.5 percent, to 24,315.
All 11 major S&P 500 sectors ended lower, led by information technology, followed by consumer discretionary and industrials, with semiconductor shares suffering the most pronounced declines.
Jay Hatfield, chief executive of Infrastructure Capital Advisors, said the rout was a true panic and mainly driven by chip stocks.
“This is a true panic. This is 100 percent about the chip stocks and the potential slowdown in the AI trade,”
Hatfield told reporters.
U.S. President Donald Trump blamed Democrats for the market slide, calling it a “sad thing to watch” and describing the selloff as “one of the Worst Days in History based on the results of the Election.”
The Cboe Volatility Index, known as Wall Street’s “fear gauge,” surged 69.66 percent to close at 28.18, its highest level since late March.
The PHLX “SOX” Semiconductor sector index slid 12 percent, its biggest one‑day drop since a 16 percent rout on March 16, 2020.
The British broadcaster BBC noted that shares in companies heavily exposed to AI data centres, including crucial chipmakers and semiconductor manufacturers, fell sharply, underscoring concerns over potential tighter scrutiny of data‑centre construction and AI infrastructure.
