The Nasdaq 100 plunged 6.36% on Thursday as fears about a slowdown in the AI buildout spread from technology shares to the broader market. The Magnificent Seven lost more than $1 trillion in market cap, and the S&P 500, Dow and Nasdaq posted their steepest one-day declines since April 2025.
The Nasdaq 100 lost 1,807.36 points, or 6.36%, to close at 26,629.81 on Thursday. Investors worried that a slowdown in artificial intelligence spending would hit not only the AI trade but also the broader market, CNBC reported.
Thursday's moves gave back Wednesday's postelection rally and then some, according to CNBC. AI-linked technology shares led the decline as investors worried that data-center developments could slow after the midterm election results.
Broad indexes post steepest drops since April 2025
The Nasdaq Composite fell 5.52% to 24,315.00 and finished in correction territory. The S&P 500 lost 4.35% to 7,353.85, and the Dow shed 1,833.16 points, or 3.44%, to 51,528.16. The Russell 2000 fell 4.45%.
CNBC reported that all three major indexes posted their worst single-day performance since April 4, 2025. Back then, the Nasdaq Composite fell 5.82%, the S&P 500 declined 5.97% and the Dow dropped more than 2,200 points, or 5.5%.
Nvidia leads $1 trillion Magnificent Seven loss
The Magnificent Seven lost more than $1 trillion in aggregate market cap, with Nvidia down more than $440 billion. Nvidia fell more than 9% and turned negative on the year.
Selling also hit AI suppliers. Micron was down about 12% during the session as investors questioned how quickly the AI buildout would translate into orders. Apple and Alphabet held up best among the Magnificent Seven, down 1.27% and 1.53%, respectively, in investingLive's late-session check.
All 11 S&P 500 sectors finished lower, led by information technology, down 7.30%. On the New York Stock Exchange, declining stocks outpaced advancing stocks 2,344 to 416.
Volatility jumps
The VIX volatility index hit its highest level since March 31, gaining 11.57 points for its biggest point gain since April 4, 2025.
Of the Nasdaq-100 stocks, 72, or 71.3%, are more than 10% off their 52-week high.
Sources: CNBC, investingLive
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