NASDAQ enters correction territory, Dow Jones falls 1,833 points amid AI stocks selloff

The Dow Jones Industrial Average plummeted 3.44% or 1,833 points to 51,523.06, while the S&P 500 fell 4.36% to 7,353.73. The tech-heavy NASDAQ Composite fell 5.52% to 24,315. This is NASDAQ's biggest single-day fall in 1.7 years, pushing the index into correction territory.

Nvidia slipped 9.26%, while Broadcom descended 10.43%. SanDisk Corporation, Micron Technology, Advanced Micro Devices and Microchip Technology were down 22.26%, 17.45%, 17.26% and 13.92%, respectively.

Microsoft, Apple, Amazon, Meta, Alphabet, Tesla, SpaceX, Visa, Astera Labs, Western Digital Corp, Dell Technologies, Lumentum Holdings and Teradyne, among others, also ended in red.

Neocloud firms such as CorWeave, Nebius, and Iren also declined 9.83%, 14.94%, and 16.95%, respectively.

Taking to X, SEN. Bernie Sanders renewed his call for a national moratorium on AI data centres.

"7 months ago, AOC and I introduced an AI data center moratorium. Last night, 43 of 44 communities voted for one locally. Americans don’t want Big Tech oligarchs wrecking the environment, gutting jobs and threatening humanity’s future. NATIONAL DATA CENTER MORATORIUM NOW," he said.

In a stinging rebuke to US President Donald Trump, American voters paved the way for the opposition Democratic Party to control the US Congress and flipped key gubernatorial posts in heavily watched polls that will have consequences far beyond America.

Trump's Republican Party witnessed stunning defeats in its strongholds such as Georgia, Iowa and Texas, where it lost the governors’ positions to the Democrats.

Stocks that ended in green include AppLovin Corporation, PDD Holdings, Exelon Corp, Comcast Corporation, Mosaic Co, Vivmark Residential and Albemarle Corp, among others.

Meanwhile, Investors will now lookout for the October US non-farm report on Friday for the latest updates on the economy.