Stock market today: Dow plunges 1,800 points, Nasdaq enters correction in AI trade meltdown
Chip and AI stocks sold off, erasing Wednesday's post-election rally: the Nasdaq Composite fell 5.5% into correction territory, the Nasdaq-100 fell 6.3%, erasing about $2.3 trillion in market value, and the Philadelphia Semiconductor Index fell 12%. Strategists attributed the selling to hedge funds locking in 2026 gains rather than a deterioration in fundamentals, while retail investors sold a net $358 million of U.S. stocks, their biggest selling day since 2020. "They're shooting the generals," wrote Nomura cross-asset strategist Charlie McElligott. Investors are also weighing how a Democratic Congress could affect AI data center buildout and regulation. Yahoo Finance
Brent crude jumps, settles up over $3 after tanker attacks
Brent futures settled up $3.67, or 3.88%, at $98.29 a barrel and U.S. West Texas Intermediate rose $2.40, or 2.72%, to $90.52, a day after both benchmarks fell more than 8% to their lowest settlements since August 31. New attacks on tankers raised supply worries; UKMTO reported at least five vessels with incidents since Sunday. Eurasia Group cut its estimate of a deal with Iran to 10% from 20% and said any escalation "could push Brent into a $110 to $125 per barrel range." Reuters
| Asset | Close | Chg | % |
|---|---|---|---|
| S&P 500^GSPC | 7,353.73 | -334.89 | -4.36% |
| Nasdaq Composite^IXIC | 24,315.00 | -1,421.51 | -5.52% |
| Dow Jones^DJI | 51,523.06 | -1,833.06 | -3.44% |
| CBOE Volatility Index^VIX | 28.18 | +11.57 | +69.66% |
| U.S. Dollar IndexDXY · 4:00 PM ET | 101.60 | +0.09 | +0.09% |
| Brent CrudeICE Jan '27 · 2:30 PM ET settle | $98.29 | +$3.67 | +3.88% |
| WTI CrudeNYMEX Dec '26 · 2:30 PM ET settle | $90.52 | +$2.40 | +2.72% |
| GoldCOMEX Dec '26 · 1:30 PM ET | $4,113.00 | +$39.90 | +0.98% |
| Tenor | Close | Chg | % |
|---|---|---|---|
| 1-MonthT-bill | 4.03% | +2bp | +0.50% |
| 3-MonthT-bill | 4.17% | -4bp | -0.95% |
| 6-MonthT-bill | 4.19% | -6bp | -1.41% |
| 1-YearT-note | 4.28% | -11bp | -2.51% |
| 2-YearT-note | 4.46% | -12bp | -2.62% |
| 5-YearT-note | 4.59% | -10bp | -2.13% |
| 10-YearT-note | 4.84% | -6bp | -1.22% |
| 30-YearT-bond | 5.25% | -3bp | -0.57% |
Equities posted their sharpest decline in months as the AI and semiconductor complex unwound, fully reversing Wednesday's post-election rally: the S&P 500 fell 334.89 points, or 4.36%, to 7,353.73, the Nasdaq Composite 1,421.51 points, or 5.52%, to 24,315.00, entering correction territory, and the Dow 1,833.06 points, or 3.44%, to 51,523.06, while the VIX rose 11.57 to 28.18, a 69.66% increase. All 11 sectors declined, with losses concentrated in growth and cyclical groups: Technology fell 8.00%, Industrials 4.12% and Consumer Discretionary 3.83%, while Communication Services (-0.59%), Utilities (-0.71%) and Consumer Staples (-0.75%) held up best. Memory and storage names led S&P 500 decliners, with Sandisk (-22.26%), Micron (-17.46%) and Western Digital (-17.35%) alongside Lumentum (-18.68%) and Advanced Micro Devices (-17.26%). AppLovin (+31.04%) was the standout gainer after reporting third-quarter results, ahead of Tapestry (+7.07%), Verisk Analytics (+6.88%), Corpay (+6.78%) and CF Industries (+6.17%).
Treasuries rallied, led by the front end: the 1-year fell 11bp to 4.28%, the 2-year 12bp to 4.46% and the 5-year 10bp to 4.59%, while the 10-year declined 6bp to 4.84% and the 30-year 3bp to 5.25%, steepening 2s10s to 38bp from 32bp. Crude rebounded from Wednesday's election-driven liquidation on renewed tanker attacks in the Gulf: January Brent settled $3.67 higher at $98.29 and December WTI $2.40 higher at $90.52, gains of 3.88% and 2.72%, widening the Brent-WTI spread to $7.77 from $6.50. Gold added 0.98% to $4,113.00 (1:30 PM ET print), and the dollar was little changed (DXY 101.60, +0.09).
Friday's October employment report at 8:30 AM is the next test for a market that has moved from relief to risk reduction in two sessions, followed by the preliminary November University of Michigan survey at 10:00 AM, remarks from Vice Chair for Supervision Bowman at 12:15 PM and September consumer credit at 3:00 PM. Next week opens with Bowman on community banking Monday at 8:40 AM and $58bn of 3-year notes at 1:00 PM. Tuesday carries Governor Waller on the economic outlook at 4:00 AM in London, October CPI and real earnings at 8:30 AM, $42bn of 10-year notes at 1:00 PM and two Bowman appearances on the outlook. Wednesday is the Veterans Day holiday, with the Fed's weekly releases moved to Thursday, Nov 12, alongside the $25bn 30-year bond auction. With the front end now pricing a lower policy path after today's rally, payrolls and CPI are the inputs most likely to decide whether the move in 2-year yields extends or retraces, and whether today's de-risking in AI-linked equities broadens or stabilizes.