Stocks suffered their steepest one-day drop in more than six months on Thursday as investors grew anxious that the artificial intelligence spending boom may be slowing down. The AI-heavy “Magnificent 7” stocks lost more than $1 trillion in market value as part of the broader market selloff.
CNBC reports that the Nasdaq Composite fell 5.5 percent, pushing the index into correction territory. The Russell 2000 small-cap index closed in correction territory too. The Dow Jones Industrial Average dropped roughly 1,833 points, about 3.4 percent, and the S&P 500 slid 4.4 percent. Wednesday’s postelection rally was wiped out in the process.
It was the worst single-day showing for the major indexes since April 4, 2025, when fears over tariffs sent markets tumbling. Thursday came close to matching those numbers. In some corners of the market, it beat them.
Technology stocks took the brunt of it. The Magnificent Seven, comprised of Apple, Microsoft, Google, Amazon, Nvidia, Meta, and Tesla, lost more than $1 trillion in combined market value. Nvidia accounted for the largest share of the loss, shedding more than $440 billion in market cap as its shares fell over nine percent. That drop put Nvidia in the red for the year, down 2.6 percent year to date.
All 11 sectors of the S&P 500 closed lower. Information technology fared worst, falling 7.30 percent, its steepest one-day decline since March 16, 2020, when it dropped 13.92 percent amid the early pandemic crash. Industrials fell 4.12 percent, the worst day for that sector since the April 2025 tariff rout, when it dropped 6.29 percent. The Technology Select Sector SPDR Fund, an exchange-traded fund tracking tech stocks, fell 8.04 percent, also its worst day since March 2020, and traded more than 33 million shares, over three times its 30-day average volume of 9.2 million.
Breitbart News previously reported that the election fired a warning shot across the bow of the AI giants, with 40 of 41 AI restrictions or moratoriums passing in local elections:
In Ohio, at least 14 municipalities passed bans or restrictions on data center development, including the town of Sunbury, where Amazon has proposed a $2 million datacenter project. Maine saw eight municipalities pass temporary moratoriums. In Emporio, Kansas, voters approved a ban on high-impact data centers after a 1,000-acre, gigawatt-scale project was recently proposed for the area.
The lone exception came in Hardwood, North Dakota, a town with fewer than 1,000 residents, where voters rejected a bill that would have imposed restrictions on datacenter development.
AI presents both strong opportunities for American progress as well as landmines that can destroy political careers or sink the stock market. Breitbart News social media director Wynton Hall has written his New York Times bestseller Code Red: The Left, the Right, China, and the Race to Control AI to serve as the definitive guide on how the MAGA movement can create positions on AI that benefit humanity without handing control of our nation to the leftists of Silicon Valley or allowing the Chinese to take over the world.
Read more at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of AI, free speech, and online censorship.
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