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The Dow, S&P 500 and Nasdaq fell sharply Thursday after a post-election rally the previous day, with technology and semiconductor stocks leading the decline. The Nasdaq was down 5% in the latest reported figures, while the semiconductor index fell 11%; the final closing levels were not provided in the source.
US stocks fell sharply Thursday, reversing the previous session’s post-election rally as investors sold technology and semiconductor shares. In figures reported by Yahoo Finance at 5 p.m. GMT+1, the Dow Jones Industrial Average dropped 2.2%, or more than 1,200 points, the S&P 500 fell 3.3%, and the Nasdaq Composite slid 5%, putting it on track to close in correction territory.
The decline followed gains on Wednesday after Democrats won both chambers of Congress in the midterm elections, according to Yahoo Finance. Thursday’s sell-off was especially severe in chips: the PHLX Semiconductor Index fell 11% as Nvidia, Micron and other semiconductor stocks sank. Earlier in the session, Yahoo Finance reported losses of more than 6% for Nvidia, 12% for Micron and 13% for AMD, alongside a steep drop in the Nasdaq.
The market move developed during the day. US stocks opened mixed, with the Dow initially higher while the Nasdaq and S&P 500 slipped. A later Yahoo Finance update described the Nasdaq down about 4%, the S&P 500 down 2.3% and the Dow off more than 700 points. The report’s latest figures showed the declines had deepened. These are intraday updates; the supplied material does not give verified closing prices.
Oil prices also rose as investors weighed the outlook for the Middle East conflict and the possibility of a US-Iran deal. Brent crude traded around $97 a barrel and US benchmark West Texas Intermediate around $90, according to the report. Separately, a Challenger, Gray & Christmas report said announced layoff plans in October fell to their lowest level since 2023, ahead of Friday’s employment report.
Chip Losses Drive Market Reversal
The scale and concentration of Thursday’s declines matter because semiconductor and AI-linked companies have been central to recent market gains. A broad sell-off in those shares can weigh heavily on major indexes, particularly the Nasdaq, and can quickly reverse gains from a previous session. The reported 11% fall in the semiconductor index signals that the pressure was not limited to one company.
The move also shows that the election result did not settle investors’ views about the economic and regulatory outlook. Yahoo Finance reported that investors were still weighing which industries could benefit or face pressure under the new political balance in Congress, including the implications for AI infrastructure spending and regulation. The source does not establish that election-related concerns caused the chip sell-off; it reports that those questions remained part of the market’s assessment.
For households and investors, sharp movements in major indexes can affect retirement accounts and investment portfolios, though the impact depends on individual holdings and market exposure. The day’s figures also provide a snapshot rather than a final verdict: the supplied report describes a developing session and does not confirm where the indexes ultimately closed.
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From Election Rally to Sell-Off
Wednesday’s rally came after Democrats swept both chambers of Congress in the midterm elections. Yahoo Finance said investors initially responded to the removal of election uncertainty, then continued to assess what the change in Capitol Hill’s political balance could mean for businesses and the economy. Thursday’s decline erased those gains, according to the report.
Several other developments formed part of the day’s market backdrop. Oil rebounded after falling sharply Wednesday, amid uncertainty about whether President Donald Trump would pursue an agreement with Iran to end the war in the Middle East. Vice President JD Vance wrote on X, “The reason we lost [the midterm elections] is the war,” a comment Yahoo Finance said contributed to overnight optimism about efforts to resolve the conflict. The source did not report a confirmed agreement.
Investors were also preparing for Friday’s employment report. The October layoff-plan figure reported by Challenger, Gray & Christmas offered one labor-market data point, but it does not by itself establish the broader state of hiring or employment. Earnings from companies including Duke Energy, Airbnb and Lumentum were also on the calendar, while Qualcomm shares fell after its quarterly results, according to Yahoo Finance.
Closing Levels and Causes Unsettled
The source provides changing intraday figures and an update timestamp, but does not specify final closing levels or confirm whether the Nasdaq ended the day in correction territory. It says the index was on track to close in a correction, which describes a projection at that point in trading, not a confirmed close.
The report links the sell-off to weakness in AI and semiconductor shares and says investors continued to assess election implications. It does not identify a single confirmed cause for the declines or establish how much each factor contributed. It also leaves unclear whether oil’s rise reflected expectations of a change in US policy, other supply concerns or a combination of influences.
The source does not provide a confirmed outcome for possible US-Iran talks or a detailed account of the policies investors expect from the new Congress. It also does not include Friday’s employment figures, which were still forthcoming when the report was published.
Employment Data and Market Close
The next scheduled data point highlighted in the report is Friday’s employment report, which investors may use to assess labor-market conditions alongside October’s layoff-plan figures. The supplied source does not give a release time or forecast for that report.
For the market reversal itself, the immediate outstanding detail is the final close for the Dow, S&P 500, Nasdaq and semiconductor index. Investors will also continue to monitor company earnings and developments involving oil and the Middle East. The source does not identify a specific policy announcement or event that would resolve uncertainty around the new Congress’s effects on markets.
Key Questions
How much did the major US indexes fall?
In Yahoo Finance’s latest supplied figures, the Dow fell 2.2%, or more than 1,200 points, the S&P 500 fell 3.3%, and the Nasdaq Composite dropped 5%. The report does not provide confirmed closing levels.
Which stocks or sectors led the decline?
Semiconductor and AI-related shares led the sell-off. The PHLX Semiconductor Index fell 11%; earlier intraday figures cited by Yahoo Finance showed losses for Nvidia, Micron and AMD.
Why did stocks reverse Wednesday’s gains?
Yahoo Finance reported that technology and chip shares came under heavy selling pressure as investors continued to assess the election’s implications. The source does not establish one definitive cause for the reversal.
Did the Nasdaq close in correction territory?
The report said the Nasdaq was on track to close in a correction, but it does not confirm the closing level. The final status cannot be determined from the supplied information.
What market event was due next?
The next major economic release mentioned was Friday’s employment report. Investors were also watching company earnings and developments related to oil and the Middle East.
Source: finance.yahoo.com
