Nasdaq Plunges 5% as Investors Abandon the AI Trade After Midterms

Nasdaq Sinks 5% as Investors Retreat from AI Trade After Election

The tech-heavy Nasdaq fell 5% into correction territory and the Dow dropped about 1,500 points as investors unwound this year's hottest AI bets, bracing for a slowdown in the AI build-out. Chipmakers and data-center suppliers took the heaviest losses, the S&P 500 slid 3.8%, and a flight to quality pushed the 10-year Treasury yield to its lowest since September 9.