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Dow plunges 1,200 points, Nasdaq into correction territory after midterm results stock rally
ABC News - Breaking News, Latest News and Videos • • business
Key Points:
- The Dow Jones Industrial Average plunged about 1,220 points (2.2%) on Thursday, reversing most of the previous day's gains driven by midterm election results.
- The S&P 500 fell 3.2%, and the Nasdaq dropped 4.8%, entering correction territory with a decline of over 10% from its recent peak.
- AI-related stocks were heavily impacted, with Nvidia down 7%, Advanced Micro Devices falling 12%, and SanDisk losing more than 15%, amid investor concerns over new Democratic policies critical of AI data centers.
- Major tech firms involved in AI, including Microsoft and Amazon, also saw their shares decline by more than 2% following the election results.
- Analysts warn that the Democratic victories in midterm elections may slow the pace of AI development in the U.S., prompting OpenAI to introduce new "responsible AI infrastructure" policies in response.
