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Chip stocks fall as indexes drop in session after U.S. midterms
Yahoo Finance said semiconductor shares led a Thursday sell-off, with the PHLX Semiconductor Index down about 10% as Nasdaq and S&P 500 losses widened after Wednesday’s post-election rally.
Semiconductor shares fell sharply on Thursday, Yahoo Finance reported, as U.S. indexes reversed Wednesday’s post-midterm gains1.
The outlet said the Nasdaq Composite was down more than 5% in late-morning trading and the S&P 500 more than 3%, on pace for their worst day since an April 2025 tariff-related drop1. It said the Nasdaq erased Wednesday’s post-election rally within six minutes1.
Yahoo Finance said investors had bought stocks Wednesday after Democrats won control of both chambers of Congress, aided by lower oil prices and Treasury yields, and that Thursday’s focus shifted to what a Democratic Congress could mean for the artificial-intelligence buildout and data centers1.
The PHLX Semiconductor Index was down about 10% and more than a third below its June record, the outlet said1. It put the S&P 500’s market-value loss at more than $2 trillion, Nvidia’s at more than $400 billion, and chipmakers as a group at well over $1 trillion1.
Memory and storage stocks SanDisk, Western Digital, Seagate and Micron posted steep double-digit losses, Yahoo Finance said, while AMD, Marvell, Arm and Lam Research also fell sharply and Nvidia, Broadcom and Taiwan Semiconductor were down near 10%1. Cloud, networking and other AI-supply-chain names including Nebius, CoreWeave, Astera Labs, Lumentum and Coherent were also described as down double digits1.
The outlet said the Dow Jones Industrial Average was heading for its worst second session after a midterm election in data going back to 1896, and that the S&P 500 was on pace for its worst second day after a midterm in nearly a century, after a 2002 drop of about 2.3%1. Closing prices and whether the session finished at those levels were not confirmed in the report1.
