Capitalization of the 'Magnificent Seven' drops by over $1 trillion
The U.S. stock market plunged sharply amid concerns that AI development will slow following a Democratic victory
The sell-off affected both technology companies and the broader market. The Dow Jones fell by over 1,800 points, while the S&P 500 lost more than 4%. The Nasdaq Composite and Russell 2000 ended the session in correction territory, erasing not only the previous day's gains but also part of earlier achievements.
The information technology sector suffered the most, posting its worst daily performance since March 2020. All 11 sectors of the S&P 500 closed lower. Nvidia's stock dropped by over 9%, and its contribution to the total capitalization decline of the 'Magnificent Seven' exceeded $440 billion.
The volatility index VIX reached its highest level since late March. On the New York Stock Exchange and Nasdaq, the number of declining stocks significantly outpaced the number of advancing ones. A substantial portion of companies in the S&P 500 and Nasdaq-100 also fell well below their 52-week highs.
