US stocks fell on Thursday as investors reacted to Democrats winning control of both the Senate and the House of Representatives. In afternoon trading, the S&P 500 was down about 4%, the Nasdaq Composite was down 5.1%, and the Nasdaq 100 was down 5.2%, erasing about $2 trillion in market value from the latest index. Semiconductor and AI infrastructure stocks led the decline, with Nvidia down nearly 9%, the Philadelphia Semiconductor Index down more than 10% and Tesla down 12%. The Nasdaq entered correction territory, falling more than 10% below its October peak. The sell-off reversed on post-election Wednesdays as investors also weighed high AI infrastructure costs and interest rate uncertainty.

US stocks fell on Thursday as investors reacted to Democrats winning control of both the Senate and the House of Representatives. In afternoon trading, the S&P 500 was down about 4%, the Nasdaq Composite was down 5.1%, and the Nasdaq 100 was down 5.2%, erasing about $2 trillion in market value from the latest index. Semiconductor and AI infrastructure stocks led the decline, with Nvidia down nearly 9%, the Philadelphia Semiconductor Index down more than 10% and Tesla down 12%. The Nasdaq entered correction territory, falling more than 10% below its October peak. The sell-off reversed on post-election Wednesdays as investors also weighed high AI infrastructure costs and interest rate uncertainty.