Wall Street in Red: AI Stocks Plunge, Nasdaq Down 5.52%

Wall Street just closed its reddest session of the year. The Nasdaq fell 5.52% to 24,315, officially into correction territory; the S&P 500 lost 4.36% and the Dow 3.44% — the post-election rally wiped out in a single day.

AI stocks took the heaviest hit: NVIDIA shed 9.3%, AMD crashed more than 17% across two sessions, and the Philadelphia semiconductor index lost over 12%. The VIX fear gauge jumped to the 27–28 range.

Analysts point to two drivers. First, AI-bubble fears: valuations ran too hot while real revenues lag expectations. Second, politics: Democrats swept the midterms, and 41 ballot measures restricting data-center construction across the US nearly all went against the industry.

Data centers are the rear base of the AI race. Squeeze that base today, and AI development slows tomorrow — in civilian and military applications alike.

🎬 Analysis Short: watch on YouTube (link in this article).