- Wall Street's post-election rally reversed with heavy selling in tech and AI stocks Thursday
- Dow Jones futures fell 1,221 points, a 2.28% drop, following Wednesday's 1,569-point rally
- Nasdaq dropped 3.09%, S&P 500 fell 1.66%, and Philadelphia Semiconductor Index lost 7.1%
Wall Street's post-election rally reversed on Thursday as heavy selling returned across technology and artificial intelligence stocks. Dow Jones futures plunged 1,221 points, or 2.28%, to 52,282 in the morning session. The decline followed Wednesday's 1,569-point rally, which had lifted the index after Democrats secured control of Congress.
The selling extended beyond semiconductor companies. AI infrastructure suppliers, data-centre operators and technology stocks faced renewed pressure. The Nasdaq Composite fell 3.09% to 24,941.44, while the S&P 500 declined 1.66% to 7,560.88 at 9:57 am ET. The Philadelphia Semiconductor Index dropped 7.1%.
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Memory and storage companies recorded some of the steepest losses. SanDisk plunged 20.60% to $823.66, while Western Digital fell 17.30% to $267.80. Seagate Technology declined 15.81% to $469.01. Oracle also dropped 8.77% to $112.88, extending pressure across companies linked to AI infrastructure.
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Chipmakers remained under intense selling pressure. AMD plunged 10.83% in early trading, while Micron declined 6.53%. Intel lost 5.85%, and Nvidia slipped 3.75%.
SK Hynix's US-listed shares fell 7.98%. Earlier, Qualcomm had dropped around 9% after its smartphone-chip sales outlook disappointed investors. Weak handset demand and declining Apple-related revenue added to sector concerns.
The broader concern centres on the future of America's AI infrastructure expansion. Democrats made significant gains in Texas and Georgia, where opposition to large data-centre projects has grown. Investors fear tighter scrutiny, construction restrictions and delays could disrupt planned investments.
UBS strategists estimated that around 30% of expected US data-centre capacity additions in 2028 could face disruption. Higher borrowing costs and questions over returns from massive AI investments have added pressure.
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Elon Musk-linked companies also extended their declines. Tesla shares dropped nearly 10% to $347.79, while SpaceX fell 9.26% to $123.33. Both companies had already weakened during Wednesday's trading. Musk's political spending and Democratic victories in key business locations added another layer of uncertainty. Thursday's reversal exposed how quickly sentiment can change when investors reassess AI spending, valuations and regulatory risks.
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