U.S. stocks plunge as AI selloff sparks market rout-Xinhua - 新华网

NEW YORK, Nov. 5 (Xinhua) -- U.S. stocks plunged on Thursday as a massive selloff in semiconductor and artificial intelligence (AI)-related shares hammered technology stocks.

The three major indexes posted their steepest daily declines in months. The Dow Jones Industrial Average fell 1,833.06 points, or 3.4 percent, to 51,523.06. The S&P 500 dropped 334.89 points, or 4.4 percent, to 7,353.73. The Nasdaq Composite Index tumbled 1,421.52 points, or 5.5 percent, to 24,315.

All 11 major S&P 500 sectors ended lower, led by information technology, followed by consumer discretionary and industrials. Semiconductor stocks suffered particularly heavy losses, as concerns mounted that Democratic victories in the midterm elections could lead to tighter restrictions on data center construction and slow the expansion of AI infrastructure.

"This is a true panic. This is 100 percent about the chip stocks and the potential slowdown in the AI trade," said Jay Hatfield, chief executive of Infrastructure Capital Advisors.

U.S. President Donald Trump blamed Democrats for the market decline, calling it a "sad thing to watch" in a social media post on Thursday. He also described the selloff as "one of the Worst Days in History based on the results of the Election."

Reflecting the sharp deterioration in investor sentiment, the Cboe Volatility Index (VIX), widely known as Wall Street's "fear gauge," surged 69.66 percent to close at 28.18, its highest closing level since late March.

Bloomberg reported that a selloff in chipmakers and AI-related stocks quickly wiped out earlier gains in U.S. equities, with losses gradually spreading to other sectors. Investor sentiment remained under pressure amid continued uncertainty over the market outlook, and restoring market confidence could take time. ■