Nasdaq has its worst day in 18 months after the midterms

Nasdaq enters correction, 10%+ below its record high, reportedly as AI scrutiny fears hit stocks.

The Nasdaq Composite tumbled 4.2% on Thursday, per CNBC. The S&P 500 dropped 2.9% and the Dow shed 2.2%. The Guardian reported the Nasdaq was on track for its worst day in 18 months, its biggest one-day fall since the April 2025 tariff announcement.

The BBC and The Guardian link the sell-off to expected tougher scrutiny of AI and data center construction after Democratic wins in the midterms, including in Texas. By lunchtime, SpaceX was down more than 9% and Tesla more than 11%, per the BBC.

Qualcomm slid 9% after a light first-quarter forecast, leading chip stocks lower, per CNBC. AMD, Micron, Arm and Intel also declined, on fears of a data center slowdown after Democrats indicated plans for AI regulation, per CNBC. CNBC's Jim Cramer agreed data center construction will likely slow, but said "it's certainly not going to go away."

“it's certainly not going to go away.”CNBC's Jim Cramer on the AI data center buildout

The facts we checked

According to The Guardian, CNBC and the BBC

1. The Nasdaq Composite entered correction territory, falling more than 10% from its record high.Fact · CNBC and The Guardian
2. The Nasdaq was on track for its worst day in 18 months after slumping by up to 5% on Thursday, its biggest one-day fall since the April 2025 tariff announcement.Reported · The Guardian
3. The Nasdaq Composite tumbled 4.2%, while the S&P 500 dropped 2.9% and the Dow shed 2.2%.Figure · CNBC
4. The Nasdaq had fallen by more than 5% at one point in early trading.Figure · BBC News
5. The sell-off is linked to expected tougher scrutiny of AI and data center construction after Democratic wins in the midterms, including in Texas.Reported · BBC News and The Guardian
6. SpaceX shares were down more than 9% by lunchtime Thursday; Tesla shares dropped more than 11%.Figure · BBC News
7. Qualcomm stock slid 9% on Thursday after it issued a light first-quarter forecast, leading chip stocks lower.Reported · CNBC
8. Qualcomm projected Q1 adjusted earnings of $2.15 to $2.35 per share, against analyst estimates of $2.27.Figure · CNBC
9. Qualcomm's handset chip sales fell 26% to $5.14 billion in the quarter, short of the $5.21 billion StreetAccount estimate.Figure · CNBC
10. Peers including AMD, Micron, Arm and Intel also declined Thursday, on fears of a data center slowdown after Democrats indicated plans for AI regulation.Reported · CNBC
11. On the AI data center buildout, Jim Cramer agreed construction will likely slow but stressed: "it's certainly not going to go away."Quote · CNBC
12. CNBC's headline says Cramer believes the AI trade is not going away as the Nasdaq enters correction.Reported · CNBC

Sources

• The GuardianNasdaq heading for worst day in 18 months as Wall Street sustains widespread losses
• CNBCJim Cramer says the AI trade is not going away as Nasdaq enters correction
• BBC NewsShares in Musk's SpaceX plunge as tech and AI stocks fall
• CNBCQualcomm slides 9% after earnings, leading postelection chip stock sell-off