Wall Street plunges and erases the post-election rally: Nasdaq drops 5.5% and enters correction

Wall Street suffered on Thursday its worst session since April 2025, wiping out in one stroke the rally that followed the midterm elections. The S&P 500 fell 4.4%, the Dow Jones lost more than 1,800 points and the Nasdaq plunged 5.5%, according to the AP news agency.

The sell-off was led by stocks tied to the buildout of artificial intelligence data centers. Investors fear the new Democratic-controlled Congress could slow or raise the cost of those projects with new regulations, and disappointing results from several chip companies deepened the drop. Nvidia fell 9.3% and AMD tumbled 17.3%, according to AP.

The Nasdaq ended more than 10% below its October all-time high, entering correction territory. Reuters estimated the session erased about $2 trillion from the Nasdaq's market value. All 11 sectors of the S&P 500 closed in the red.

The plunge fully reversed Wednesday's session, the best in three months, when the Dow had risen more than 1,500 points and the S&P 500 gained 1.6% after the Democratic victory. Despite the drop, all three indexes remain positive so far in 2026: the S&P 500 is up about 7.4% for the year, according to AP.

The session was also marked by the Bank of England's decision to raise its main interest rate to 4%, its first increase in three years, to contain inflation tied to energy prices.

Photo: AP

Source: AP