S&P 500 Posts Worst Day Since April as Nasdaq Enters Correction
Tech sector selloff drags major indexes lower, wiping out post-midterm gains and pushing the Nasdaq into correction territory.
U.S. equity markets suffered a broad retreat Wednesday, with the S&P 500 recording its steepest single-day loss since April 2025 as a sharp pullback in technology shares weighed heavily on major indexes. The selloff erased the gains Wall Street had accumulated following the midterm elections, underscoring how quickly investor sentiment can shift.
The Nasdaq composite, which is heavily weighted toward technology companies, fell far enough to meet the standard definition of a correction — a decline of at least 10 percent from a recent peak. The move signals that the post-election optimism that briefly lifted markets has given way to deeper concerns about sector fundamentals.
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At the center of the unease is the artificial intelligence buildout that has propelled tech valuations to elevated levels in recent years. Investors appear to be questioning whether the massive capital spending required to sustain AI infrastructure can translate into proportionate returns, a doubt that has historically triggered outsized swings in growth-oriented stocks.
The breadth of Wednesday's decline suggests the anxiety extended beyond any single company or earnings report, pointing instead to a broader reassessment of risk across the technology sector. Analysts note that corrections of this nature, while jarring, are not uncommon during periods when market valuations outpace near-term earnings visibility.
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