A Record Rally Erased in a Single Session
The Dow Jones Industrial Average dropped roughly 1,200 points on Thursday, surrendering most of the ground it had gained a day earlier when midterm election results drove the index to its best trading day in over a year. The blue-chip benchmark closed down 1,220 points, a decline of 2.2%. The S&P 500 shed 3.2%, and the technology-heavy Nasdaq fell 4.8%, a drop that placed it in correction territory — defined as a fall of more than 10% from a peak reached last month.[S1][S2][S4]
The retreat stood in sharp contrast to Wednesday, when the Dow climbed 1,570 points, or 3%, its strongest single session since April 9, 2025, the day President Donald Trump announced a pause on a broad set of reciprocal tariffs. By Thursday's close, much of that advance had been undone.[S1]
Chipmakers and AI Giants Bear the Brunt
The selling pressed hardest on companies tied to artificial intelligence. Nvidia, the chipmaker whose semiconductors underpin many AI products, lost 7% of its value. Advanced Micro Devices, a rival chip designer, fell 12%, while SanDisk, another hardware supplier, dropped more than 15%.[S1]
Large technology firms active in AI development also slid. Microsoft, which owns a substantial stake in OpenAI, declined more than 2%, and Amazon, which has committed hundreds of billions of dollars to AI infrastructure, fell by a similar margin. Investors appeared to be weighing the risk that newly empowered Democrats, several of whom campaigned against AI data centers, could slow the sector's expansion.[S1]
Election Map and Industry Response
Tuesday's voting delivered statewide wins for Democratic Senate and gubernatorial candidates in Republican-leaning states including Ohio and Texas, both home to numerous AI data centers. Strong showings in House races appeared to put Democrats on course for a comfortable majority in that chamber.[S1]
A day after the election, OpenAI published a set of data center policies it described as responsible AI infrastructure. The ChatGPT developer said it would cover all electricity and infrastructure costs at its facilities, draft a water plan for each site to protect local resources, and create employment opportunities for local workers and businesses, according to a company blog post.[S1]
