Chip stocks get slaughtered as Wall Street in worst post-midterm day since 1896

What happened: Chip stocks fell sharply Thursday as the Dow Jones Industrial Average (^DJI) dropped 3.4%, its worst second session after a midterm election in data back to 1896. Why it matters: Attention shifted to what a Democratic Congress could mean for the AI build-out and the data centers driving it. Both the Nasdaq Composite and Nasdaq-100 closed below their 200-day moving averages for the first time since April, a line many traders treat as the boundary between uptrend and downtrend.

Chip stocks fell sharply Thursday as the Dow Jones Industrial Average (^DJI) dropped 3.4%, its worst second session after a midterm election in data back to 1896.

Attention shifted to what a Democratic Congress could mean for the AI build-out and the data centers driving it. Both the Nasdaq Composite and Nasdaq-100 closed below their 200-day moving averages for the first time since April, a line many traders treat as the boundary between uptrend and downtrend.