US stocks plunged on Thursday, erasing Wednesday’s rally following the US midterm elections, as investors accelerated their retreat from technology shares.
The Nasdaq Composite tumbled 5.52% to 24,315.00, entering correction territory after falling more than 10% from its recent peak. The S&P 500 dropped 4.36% to 7,353.73, while the Dow Jones Industrial Average shed 1,833.06 points, or 3.44%, to close at 51,523.06.
All three major benchmarks recorded their worst session since April 2025, while the small-cap Russell 2000 declined 4.45% and also entered correction territory.
Semiconductor and data centre stocks led the sell-off as investors assessed the implications of the Democratic Party’s sweeping victory in the US midterm elections. Concerns centred on potential restrictions on data centre development, including calls for a national moratorium on new projects.
Broadcom plunged 10%, Nvidia fell 9% and Oracle declined almost 7%. Qualcomm dropped 9% after issuing a weaker-than-expected earnings outlook despite reporting quarterly results that exceeded expectations.
The iShares Semiconductor ETF sank more than 12%, recording its worst session since March 2020. Cloud infrastructure providers also suffered heavy losses, with CoreWeave falling nearly 10%, Nebius sliding 15% and Iren declining almost 17%.
Selling spread beyond technology stocks as investors reduced exposure across the broader market. Caterpillar dropped 6%, JPMorgan fell 4%, while Boeing and Nike each declined around 2%.
European markets closed before the sharpest US declines, with major indices falling less than 1%. Meanwhile, the Bank of England raised interest rates to 4%, its first increase in three years, signalling that further tightening may be required to contain inflation.
Australian Market Outlook
Australian shares are set to open lower on Friday, with S&P/ASX 200 futures down 49 points, or approximately 0.5%, to 9,029.
Attention will turn to Macquarie Group, which is scheduled to release its half-year financial results, providing an update on investment banking activity, asset management and broader financial market conditions.
Coles Group, Nine Entertainment and Qantas will hold annual general meetings, with investors looking for updates on trading conditions and corporate strategy.
