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Nasdaq heading for worst day in 18 months as Wall Street sustains widespread losses

The tech-heavy US Nasdaq share index is on track for its worst day in 18 months after slumping by up to 5% on Thursday amid growing signs that the artificial intelligence industry will face tougher regulation after this week’s midterm elections. As Wall Street sustained widespread losses, the Nasdaq composite tumbled into ‘correction territory’ – more than 10% below its recent record high. The index was heading for its biggest one-day fall since Donald Trump announced his ‘liberation day’ tariffs on US trading p…

Truvace record2 min read1 sourceEvidence: Emerging · 42/100 — News report · 1 independent sourceJournalismTRV-2026-2383 · cite or check it
Nasdaq heading for worst day in 18 months as Wall Street sustains widespread losses

In brief

The tech-heavy Nasdaq composite fell by up to 5% on Thursday, heading for its worst day in 18 months and dropping more than 10% below its recent record high. It was the biggest one-day fall since the April 2025 'liberation day' tariff announcement.

Analysts tied the slide to expectations that Democratic governors, who won a series of gubernatorial races this week, will clamp down on new datacentres. US voters also rejected datacentres in several local ballots.

The sell-off reversed Wednesday's rally, when stocks had their biggest daily gain in months. One strategist called the selling overdone, so how long the slump lasts is unclear.

Main points

  1. The Nasdaq composite slumped up to 5% and entered correction territory, more than 10% below its record high.
  2. SanDisk fell 19% and Western Digital fell 16.5%, as chip stocks led the slump.
  3. The VIX 'fear index' jumped 40% to its highest level since the early weeks of the Iran war.
  4. The Dow fell more than 1,000 points, or 2%, to 52,264 in late morning trading; Nvidia dropped 6.7% and Goldman Sachs 5.7%.
  5. Tech analyst Dan Ives said Democratic control, especially of the Senate, will create major hurdles for AI and tech legislation over the next two years.
  6. Britain's FTSE 100 closed down 46 points, or 0.4%, at 10782.66 after an early rally faded.

The problem

The Nasdaq fell as much as 5% on Thursday into correction territory, its worst day in 18 months, as investors expected tougher scrutiny of AI datacentre expansion after the midterms.

The full story

Wall Street sustained widespread losses on Thursday as worries over massive AI spending spread from New York to other markets worldwide. Chip stocks led the fall, with SanDisk down 19% and Western Digital down 16.5%.

Investors pointed to Democratic wins in gubernatorial races and local ballots in which voters rejected datacentres. Saxo UK strategist Neil Wilson described a 'complete capitulation level event' in tech stocks but said it looked 'totally overdone'.

The Dow was down more than 1,000 points to 52,264 in late morning trading, with Nvidia the top faller at 6.7%. Europe's early rally had fizzled out by late trading.

Sources

  1. JournalismThe Guardian2026-11-05

The debate