'Worst Drop In 19 Months': Why US Stocks Came Under Fire Day After Rally
US stock markets experienced a significant sell-off, with the Nasdaq suffering its largest decline in 19 months. The downturn was primarily driven by investor anxiety regarding the high valuations of AI and semiconductor companies.
Why it matters
This market correction highlights growing investor skepticism toward the sustainability of the AI-driven tech rally and potential economic volatility following political shifts.
Stock Market News: After a powerful rally following the US midterm elections, Wall Street witnessed a broad sell-off. The Nasdaq Composite suffered the biggest damage, while the S&P 500 also slipped sharply. The volatility gauge surged, signalling a sudden jump in investor anxiety.The reversal was particularly striking because the rally had been fuelled by hopes that the election outcome -- a landmark US Congress by Democrats -- would provide greater clarity on the economic and political outlook. But the market's next move exposed a different concern: investors were increasingly questioning whether technology and AI stocks had run too far, too fast.What Triggered The Sell-Off?1. AI And Chip Stocks Suddenly Came Under PressureThe biggest trigger was a sharp sell-off in semiconductor and artificial intelligence-linked stocks. The Nasdaq Composite plunged 5.52 per cent on November 5, marking its biggest daily decline in 19 months.
Headlinne story · 3 newsrooms
Wall Street Suffers Historic Selloff as Artificial Intelligence Stocks Plunge
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