S&P 500 Posts Worst Day Since April as Nasdaq Enters Correction
Tech sector weakness drove the S&P 500 to its steepest single-day loss since April 2025, pulling the Nasdaq into correction territory.
Wall Street suffered a sharp selloff Wednesday, with the S&P 500 recording its worst single-session decline since April 2025 as technology stocks bore the brunt of a broad market retreat. The losses effectively erased gains that had accumulated following the midterm elections, underscoring how quickly investor sentiment can shift.
The tech-heavy Nasdaq Composite fell far enough from its recent peak to meet the standard definition of a correction — a drop of at least 10 percent from a prior high. The move reflected growing unease among investors over whether the artificial intelligence spending boom that has propelled technology valuations for months can be sustained at its current pace.
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Concerns about the durability of AI infrastructure investment have been building for some time, but Wednesday's session suggested those doubts reached a tipping point. Large-cap technology companies, which had been among the primary beneficiaries of AI-related enthusiasm, led the broader indexes lower as traders reassessed growth expectations.
The midterm election rally, which had lifted equities across multiple sectors, proved short-lived as macroeconomic and earnings-related anxieties reasserted themselves. Analysts noted that any sustained recovery in technology stocks is likely to hinge on fresh evidence that corporate demand for AI tools and data center capacity remains robust.
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