Nasdaq just had its roughest day since December—here's what happened
The Nasdaq dropped 1% on Wednesday, its biggest single-day fall in nearly a month, mostly because tech and AI stocks took a hit.
Why does this matter?
Tech stocks may be down, but other parts of the market are holding strong.
Sectors like consumer staples, healthcare, and energy actually gained ground as investors shifted focus.
Plus, solid retail sales and booming home sales show the economy isn't slowing down just yet.
What's behind the drop?
Big names like NVIDIA (-1.4%), Broadcom (-4.2%), and Arm (-2.6%) slid after the administration said NVIDIA must meet new security requirements before sending H200 artificial-intelligence chips to China.
Wells Fargo also fell nearly 5%, hurt by weak earnings and talk of a proposal to cap credit-card interest rates at 10%.
The bigger picture: AI under scrutiny
With all eyes on AI's growing influence, Florida Governor Ron DeSantis is pushing for new rules to protect consumers, reflecting rising concerns about how fast tech is changing things for everyone.