Stocks Tank Amid Tech Sell-Off, Reversing Post-Election Rally

A sharp sell-off in chip and artificial intelligence shares sent US stock markets tumbling on Thursday, wiping out the previous day’s post-election gains and pushing major indexes lower. It matters because investors are again questioning whether heavy AI spending will deliver profits soon enough, while renewed business and regulatory uncertainty added to market jitters.

The Dow fell 1,800 points, or about 3.4%, the S&P 500 dropped 4% and the Nasdaq declined 5.2%. Nvidia, Micro and other major technology companies fell; Snap lost 13%, while AMC Entertainment and Imax fell 12% and 6% despite reporting strong quarters. Oil prices also rose as hopes of an end to the Iran war receded, following a Tuesday rally that had been helped by reduced uncertainty after Democrats won both chambers of Congress.