The Nasdaq fell 1,421.52 points to 24,315, closing 11.9% below its October high and entering correction territory. The Dow Jones Industrial Average dropped 1,833.06 points, or 3.44%, to 51,523.06, its biggest loss since April 4, 2025. The S&P 500 shed 334.89 points, or 4.36%, to 7,353.73.

Qualcomm’s results helped trigger the selloff. The chip supplier said higher memory and materials costs squeezed handset margins, while its data-center business did not grow fast enough to make up the difference. Arm Holdings reported quarterly revenue growth of 27%, but its outlook fell short of some investors’ expectations. “They’re spending a lot of money on it, but what are they actually generating?” said JJ Kinahan, senior vice president at Cboe Global Markets, describing investors’ questions about AI.

The Philadelphia Semiconductor Index fell 12%, its biggest one-day decline since a 16% drop on March 16, 2020. The Kospi in South Korea lost 5.3%, although it remained up about 28% for 2026. Some investors, including strategists at Elliott Management, have warned of an AI bubble; Thursday’s decline in the U.S. semiconductor index exceeded its largest drop in 2000, during the dot-com crash.

Political concerns added pressure. Some Democratic candidates who won elections, including incoming Texas Gov. Gina Hinojosa, had voiced skepticism about the data-center boom. Texas had been expected to overtake Virginia as the nation’s largest data-center hub in coming years. Nvidia fell 9.3% to $181.60, CoreWeave dropped 9.8% to $43.66, and Dell Technologies slid 15% to $316.91. CoreWeave Chief Executive Michael Intrator said in a LinkedIn post that the company did not anticipate political changes affecting existing customer commitments or its backlog.

Oil rose $2.40, or 2.7%, to $90.52 a barrel in New York, reviving inflation concerns. Treasury yields fell: the two-year yield declined 0.104 percentage point to 4.475%, while the 10-year yield dropped 0.055 point to 4.836%. Gold gained 1% to $4,102.50 an ounce, its highest close since Oct. 21. Toyota rose after raising its annual earnings projection; Kimberly-Clark also advanced after reaffirming its growth forecasts.