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The Nasdaq Composite fell 5.5% Thursday to 24,315, more than 10% below its October 6 high and in correction territory. Technology stocks led a broad sell-off, while the VIX reached its highest point since March; analysts cited valuation concerns and uncertainty over data-center expansion as possible drivers.
U.S. stocks fell sharply Thursday, led by a 5.5% drop in the Nasdaq Composite to 24,315, putting the index more than 10% below its October 6 high and in correction territory. The Cboe Volatility Index, or VIX, also reached its highest point since March, as investors sold technology shares and other recent market leaders.
The Dow Jones Industrial Average fell 3.4% to 51,523, while the S&P 500 dropped 4.4% to 7,353. All 11 S&P 500 sectors ended lower, with technology recording the steepest decline. The Nasdaq’s loss was its biggest one-day percentage drop since the April 2025 tariff-related sell-off, according to the source report.
Several high-flying chip stocks took heavy losses. Micron fell 17.5% and Sandisk dropped 22.3%; the report said both had risen substantially this year amid enthusiasm for artificial intelligence. Nvidia declined 9.3%, its largest one-day drop since January 27, 2025, when it fell 17% during a market reaction to DeepSeek developments. Alphabet fell 2.2%, Meta Platforms lost 4.0%, and Microsoft declined 3.6%.
Some company-specific results moved shares against the market trend. Qualcomm fell 9.5% after issuing a first-quarter fiscal 2027 earnings forecast below analysts’ consensus, despite reporting fiscal fourth-quarter earnings and revenue above expectations. AppLovin, by contrast, rose 31% after reporting third-quarter earnings per share up 76% year over year and revenue up 55%, with both figures beating analysts’ estimates, according to the report.
Tech Losses Put Nasdaq in Correction
The drop moves the Nasdaq more than 10% below its October 6 peak, the threshold commonly used to describe a market correction. That marks a substantial reversal for an index heavily weighted toward technology companies, including large artificial-intelligence and semiconductor firms.
The declines also show that the pressure was not limited to one stock: all 11 S&P 500 sectors fell, and the VIX reached its highest level since March. For investors, that combination signals a broad retreat and heightened demand for protection against market swings. It does not, by itself, establish whether the sell-off will continue or how much it will affect the wider economy.
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Valuations and Data-Center Concerns
The source report attributed the selling partly to concerns that Democratic leaders in Washington and several states, including Texas and Ohio, could create obstacles for data-center construction. It did not specify particular policies or quantify any expected effect on construction or company earnings, so that explanation should be treated as a reported concern rather than a confirmed cause of the market decline.
David Bahnsen, chief investment officer at The Bahnsen Group, described the technology-led correction as driven in part by valuations he considered disconnected from fundamentals. The report also noted that several major companies have announced substantial spending on AI initiatives. These issues formed part of the backdrop to the market’s losses, but the available information does not establish how much each factor contributed.
“Thursday’s market action is what happens when euphoria and hype become the reason why stocks go up, rather than fundamentals.”
— David Bahnsen, chief investment officer at The Bahnsen Group
What Drove the Broad Sell-Off
The source report identifies profit-taking in this year’s big gainers, concerns about data-center expansion, and elevated technology valuations as explanations cited by market participants and analysts. It does not establish a single cause for the decline or provide evidence to measure each factor’s contribution. The specific proposals behind concerns about data-center construction are also not detailed.
The report supplies closing index levels and daily percentage moves but does not name the calendar date of Thursday’s session. It also does not say whether the Nasdaq’s decline continued in later trading. The VIX reading indicates increased volatility, but no closing value is provided.
Investors Watch Earnings and Policy
Investors will be watching for further company earnings, changes in expectations for AI-related spending, and developments around data-center construction. Qualcomm’s next-quarter results will be measured against a forecast that came in below analysts’ estimate, while AppLovin’s outlook will face attention after its strong quarterly report and share-price gain.
The source report does not identify a specific upcoming economic release or policy decision that would resolve the market’s concerns. Whether the Nasdaq stabilizes, declines further, or recovers remains open; the next trading sessions and new company or policy information will help show whether Thursday’s move was a brief sell-off or part of a longer correction.
Key Questions
How much did the Nasdaq fall?
The Nasdaq Composite fell 5.5% to 24,315 at Thursday’s close, according to the source report.
Was the Nasdaq in correction territory?
Yes. The report said the index closed more than 10% below its October 6 high of 27,599.79, placing it in correction territory.
Which major technology stocks declined?
Micron fell 17.5%, Sandisk declined 22.3%, and Nvidia lost 9.3%. Alphabet, Meta Platforms, and Microsoft also fell.
Did any AI-related stock rise?
Yes. AppLovin rose 31% after reporting third-quarter earnings and revenue above analysts’ estimates, according to the source report.
Is the reason for the sell-off confirmed?
No single cause is established in the report. It cites profit-taking, concerns about data-center expansion, and technology-stock valuations as factors raised by market participants and analysts.
Source: kiplinger.com
