Nasdaq set to confirm correction as AI stocks tumble

The Nasdaq Composite was set to confirm a correction on Thursday as chipmakers sank on fears of tougher AI regulation after the Democrats’ midterm sweep, setting up the index for its worst day since the April 2025 “Liberation Day” rout.

Nvidia dropped 7.7%, while the broader Philadelphia SE Semiconductor index plunged nearly 10%.

The shock selloff comes a day after the Democrats’ election victory including in some key data-center states drove concerns about a slowdown in the AI data-center buildout, optimism about which had pushed stock markets to record highs earlier this year.