S&P 500 Posts Worst Day Since April as Tech Stocks Sink
The S&P 500 suffered its steepest single-day drop since April 2025, with the Nasdaq sliding into correction territory amid AI spending concerns.
U.S. equity markets retreated sharply Wednesday, with the S&P 500 recording its worst single-session loss since April 2025 as a broad selloff in technology shares wiped out gains accumulated since the midterm elections, according to market data reported by The New York Times.
The tech-heavy Nasdaq Composite bore the brunt of the decline, falling far enough from its recent peak to officially enter correction territory — defined as a drop of at least 10 percent from a prior high. The move underscored how heavily index performance has come to depend on a handful of large-cap technology companies.
Read more Analysts, Investors Weigh In After AI Sector Market Selloff →
Investors cited growing unease over whether the artificial intelligence infrastructure buildout that has propelled tech valuations to record levels can sustain its current pace. Concerns about the durability of AI-driven capital expenditure have increasingly weighed on sentiment, raising questions about near-term earnings justification for elevated stock prices.
The reversal erases what had been a notable post-midterm relief rally, a pattern historically associated with reduced political uncertainty. The speed of the unwinding suggests that underlying anxiety about tech fundamentals had been building beneath the surface even as broader indexes climbed.
Analysts note that corrections of this scale in momentum-driven sectors can trigger cascading revaluations across growth-oriented portfolios, though whether Wednesday's drop marks a temporary pullback or the start of a deeper downturn remains an open question for markets heading into the next earnings cycle. Continue reading at NYT > Business.
