Nasdaq drops more than 5% Thursday as semiconductor stocks tumble
Business
The Nasdaq dropped more than 5% on Thursday, mostly because big semiconductor names like NVIDIA, AMD, and Micron saw their shares tumble, some by more than 15%.
With the index now about 11% lower than its October peak, it's looking like a real market correction could be in play.
Investors reassess semiconductor and AI exposure
A mix of things is making investors uneasy.
Recent election wins for the Democrats have sparked worries about new rules that could impact AI and data center investments, especially around energy use and environmental policies.
Add in persistent geopolitical tensions in the Middle East and concerns about prolonged inflation, which make borrowing pricier and tech stocks riskier, and it's no wonder people are rethinking bets on semiconductors and AI right now.