Wednesday's Stock Market Gains Are Going Poof

The stock market roared on Wednesday. On Thursday, it was taking back a big chunk of the gains, thanks to a massive tech selloff. The tech-focused Nasdaq slid 4.6% early Thursday, officially entering correction territory, while the S&P 500 fell 3% and the Dow lost more than 1,000 points, or 1.9%, reports CNBC. Chip and AI-linked names led the retreat: Broadcom and Nvidia each dropped 7%, Tesla and SpaceX 9% apiece, and Qualcomm sank 9% despite topping earnings estimates. Investors are repositioning as Democratic control of Congress raises expectations of tougher oversight on AI and related infrastructure, notes the Wall Street Journal.

Money flowed instead into defensive corners like consumer staples, health care, and utilities. Gold and silver extended a strong post-election run, aided by a weaker dollar and lower yields, while US crude reversed an earlier slide tied to speculation Democrats could push President Trump to wind down the Iran war. Thursday’s rout extended to crypto, with bitcoin down about 5% to $76,000.