Wednesday's rally has been followed by Thursday's correction
After a rally on Wednesday in the wake of the US Midterm elections, certain key US equities have entered correction territory. By mid-morning Thursday the Nasdaq had decline over four per cent, putting it over ten per cent below its historic high hit in October.
The S&P 500 was down around 2.6 per cent and the Dow Jones was down around 1.5 per cent. Much of the sell-off has been focused on large and meca-cap technology stocks with investors rotating to more defensive sectors of the market.
Even during Wednesday's rally, chip stocks and other names related to the data center buidlout pulled back as investors priced in more regulation on AI infrastructure construction as a result of Democratic gains in the US House and Senate as well as several key state governor's races.
Broadcom and Nvidia had each fallen by seven per cent by mid-morning Thursday. Oracle declined almost five per cent and chipmaker Qualcomm dropped nine per cent despite reporting an earnings beat. Elon Musk's Tesla and SpaceX also dropped 9 per cent on Thursday.
Crude oil prices had fallen to below US$90 per barrel on Wednesday, but prices rose back to around US$97 per barrel on Thursday.
