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The Nasdaq Composite fell 5.5% to 24,315 on Thursday, its steepest one-day percentage decline since April 2025 and more than 10% below its October 6 high. Technology shares led a broad sell-off amid concerns about data center development and high valuations, while the VIX reached its highest level since March. The source does not identify the trading date or provide a confirmed cause for the full market decline.
The Nasdaq Composite fell 5.5% to 24,315 at Thursday’s close, putting it more than 10% below its October 6 record-area high and in correction territory. Technology stocks led the decline, while the VIX reached its highest level since March, according to Kiplinger’s market report.
The Nasdaq’s decline of 1,421 points was its biggest one-day percentage drop since the market’s April 2025 tariff-related sell-off, Kiplinger reported. The Dow Jones Industrial Average fell 3.4% to 51,523, and the S&P 500 lost 4.4% to 7,353. All 11 S&P 500 sectors ended lower, with technology recording the steepest losses.
AI-linked chipmakers were among the hardest hit. Micron Technology dropped 17.5% and Sandisk fell 22.3%. Nvidia slid 9.3%, its worst session since a 17% decline during the DeepSeek-related sell-off on January 27, 2025, according to the report. Large technology companies that have announced substantial AI spending also declined: Alphabet lost 2.2%, Meta Platforms fell 4.0%, and Microsoft dropped 3.6%.
Kiplinger attributed the sell-off in part to concerns that Democratic leaders in Washington and several states, including Texas and Ohio, could create obstacles for data center construction. The report also cited investor profit-taking in stocks that had risen sharply this year. Those explanations describe factors cited by the publication and a market commentator; the source does not establish a single cause for the day’s move.
Correction Puts AI Valuations in Focus
A decline of more than 10% from the Nasdaq’s October 6 high meets the commonly used market definition of a correction. The move matters to investors because it reached beyond a handful of chipmakers: every S&P 500 sector fell, showing that the day’s selling was broad even as technology bore the largest losses.
The sharp declines in companies associated with AI reflect how exposed major indexes have become to expectations around the technology. If concerns about data center construction or the returns on AI investment persist, they could weigh on companies that supply chips and on the large firms funding infrastructure. That is a risk being discussed in the report, not evidence that spending plans have been canceled or that future returns are known.
The VIX’s rise to its highest level since March also signals increased demand for protection against market swings, though the source gives no VIX reading. One sharp session does not establish whether the declines will continue, and it does not by itself determine the longer-term direction of stocks.
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AI Winners Face a Repricing
The report describes Micron and Sandisk as major year-to-date winners before Thursday’s losses, with their shares having risen about threefold and fourfold, respectively. It links those gains to investor enthusiasm for AI-related demand. The steep drops illustrate how quickly shares with strong prior gains can fall when investors reassess expectations, but the article supplies no valuation data or evidence that the companies’ underlying results changed on Thursday.
Not every company connected with AI fell. AppLovin rose 31% after reporting quarterly results that beat analysts’ estimates, according to the report. Its third-quarter earnings were $4.30 per share, up 76% year over year, and revenue increased 55% to $2.18 billion. The contrasting performance suggests the session was not a uniform rejection of all AI-related businesses; company-specific results also influenced trading.
Qualcomm, meanwhile, fell 9.5% after reporting fiscal fourth-quarter earnings and revenue above expectations but forecasting first-quarter fiscal 2027 earnings below analysts’ estimate. The report quotes Oppenheimer analyst Rick Schafer as citing the company’s exposure to mobile phones and competition, while noting its efforts to expand beyond handsets.
“Thursday’s market action is what happens when euphoria and hype become the reason why stocks go up, rather than fundamentals.”
— David Bahnsen, chief investment officer at The Bahnsen Group, as quoted by Kiplinger
Drivers and Follow-Through Remain Unclear
The source does not provide the calendar date of Thursday’s session, the precise VIX level, or a breakdown of how much of the decline came from profit-taking versus concerns about data center policy, valuations, or other factors. Its discussion of potential political headwinds does not identify a specific policy change or confirm that construction plans have been delayed.
It is also unclear whether the market decline will continue, how investors will respond in subsequent sessions, or whether the sell-off reflects a lasting reassessment of technology companies’ prospects. The report provides no later market data, and analyst views cited in it are opinions rather than guarantees of future performance.
Investors Watch Policy and Earnings
Investors will be watching for further information about policy decisions affecting data center development, as well as company updates on AI-related investment and demand. Subsequent trading sessions will show whether Thursday’s losses broaden or stabilize; the source does not identify a specific upcoming policy decision or market milestone.
Upcoming earnings and guidance may help clarify whether the strong spending tied to AI is translating into business results. Qualcomm’s forecast and AppLovin’s reported growth offer contrasting examples of the company-specific information influencing shares. Investors should treat the figures and market commentary here as a record of the reported session, not a prediction of future returns.
Key Questions
How much did the Nasdaq fall?
The Nasdaq Composite dropped 1,421 points, or 5.5%, to close at 24,315 on Thursday, according to Kiplinger.
Was the Nasdaq in correction territory?
Yes. The report said the index closed more than 10% below its October 6 high of 27,599.79, meeting the market definition of correction territory.
Which stocks fell most sharply?
Among the declines highlighted in the report, Sandisk fell 22.3%, Micron Technology dropped 17.5%, and Nvidia lost 9.3%. These are single-session moves reported for Thursday.
Did every AI-related stock fall?
No. AppLovin rose 31% after reporting quarterly earnings and revenue above analysts’ estimates, even as many technology and chip stocks declined.
What caused the sell-off?
Kiplinger cited profit-taking, concerns about possible political headwinds for data center construction, and high technology-stock valuations. The report does not establish one definitive cause for the broad market decline.
Source: kiplinger.com
