The Post-Election Rally Is Gone: An AI Wipeout Drags Wall Street Toward Its Worst Day Since April 2025
Wednesday's 1,500-point Dow surge vanished in a day as chip stocks crashed and the Nasdaq slid into a correction. Here is what sold off, why investors blamed the midterms and Wall Street's own AI bets, and what to watch next.
By Clara Hughes
On Wednesday, Wall Street cheered the midterm results. On Thursday, it took the cheer back — and then some. As this was written late in Thursday's session, CNBC reported at 3:37 p.m. ET that the Dow Jones Industrial Average had shed 1,844 points, or 3.7%, erasing about all of Wednesday's post-election advance. The S&P 500 was down 4.3%, heading for its worst day since April 2025. The Nasdaq Composite was down 5.4% and in correction territory, more than 10% below a record set last month. The small-cap Russell 2000 was down 4.4% and also in a correction. Final closing figures may differ slightly from these late-session readings. The direction will not. For context, CNBC reported the Dow had jumped more than 1,500 points on Wednesday — its best day since April 2025 — after the Democratic sweep, helped in part, one economist told CNBC, by President Trump's acceptance of the result and stated openness to working