The AI sell-off is a blip for the S&P 500 but a Covid-sized crash for chip stocks
The AI sell-off compared to well-known stock market crashes
The S&P 500 sits 6% below its record, a modest dip given that only 16 of 56 such drops since 1928 ever passed 15%. Tech absorbed far more damage: the Nasdaq is down 11% and US chip stocks 36%, matching their Covid low. Recovery times vary wildly too — after dot-com, the S&P 500 needed 7 years to reclaim its record, while chip stocks took 18.
After dot-com, the S&P 500 took 7 years to recover, chip stocks 18.
- mkotlikov
The NASDAQ dropped 5% out of nowhere.
It wasn't midterms. Everybody expected that the Democrats would take the house and senate, it should have been priced in. The results of the election played out on election night on the futures markets overnight and into the next day. Thursday was something else, perhaps some fund blew up.
- rmah
There are always bears who are predicting the next stock market crash. They always have various reasons that make sense on the surface. They're almost always wrong. But they're always eventually right.
- bensyverson
I guess we'll see if it's really a sell-off, or if it was normal market volatility around an election.
- fauchletenerum
The crashes seem be getting smaller and more frequent
- usernomdeguerre
Or this is a correction that has already happened in other markets, and is now unwinding here:
https://www.reuters.com/world/china/china-ai-bubble-has-alre...