Tech stocks slump as AI selloff hits Wall Street after midterms
Share prices sank this week as investors weighed the U.S. election results and doubts over spending on data centers.
By Standard Topic. AI-generated from the reporting listed under Coverage. Published . Updated .
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What happened
Shares of AI and technology companies have fallen sharply since the U.S. midterm elections, and the Nasdaq 100 fund dropped 5.0% this week while the S&P 500 ETF lost 2.7%. The latest sign of stress is a record in options trading at Cboe, which reached 11.23 million contracts on November 5 during the sell-off.
Why it matters
Analysts say the record trading volume points to real stress in the stock market. Some observers argue that investors are overreacting and expect a multiyear tech bull market to continue.
Timeline
- Nov 5: Put options trading at Cboe hit a record 11.23 million contracts during a sell-off, beating the previous record of 10.22 million set on April 4, 2025.
- Nov 7, 1:33 PM ET: Stocks had soared after the Democratic sweep, but less than 24 hours later the AI trade cracked, marking the latest whipsaw in a year of wild swings.
- Nov 8, 3:42 AM ET: In a Bloomberg interview on Saturday, Dan Ives said he believes investors are overreacting to political uncertainty around AI infrastructure spending and still sees a multiyear tech bull market.
Coverage
- Wall Street Just Set a Record That Could Signal Trouble for the Stock Market (247wallst.com)
- Stocks are moving in sync again for the first time in a while. There’s just one problem. (marketwatch.com)
- This market signal called the tech selloff. Now it’s sending another warning. (marketwatch.com)
- Eric Balchunas Calls It a “Five Alarm Fire” Sell-Off. Here’s What Record ETF Trading Tells You (Yahoo News)
- Wall Street’s Fear Gauge Jumped More Than 11 Points In A Day. Buffett’s Most Famous Rule Says It Might Be Time To Get Greedy. Here’s Where The Market Has Historically Gone Over The Next 6 Months. (Yahoo News)
- Nasdaq enters correction after AI stock sell-off
- AI stock selloff wipes out $2.3 trillion as investors rethink tech
- Tech stocks slide as AI selloff follows Democratic midterm wins
- Bitcoin falls below $76,000 after AI-led tech selloff
- Tech stocks slide as midterm results fuel AI selloff fears
- Trump attributes market drop to Democrats' midterm gains
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