US Stock Market crash: US markets remained under sharp selling pressure as of 11:01 PM IST on Thursday, November 5, with the Dow Jones crashing nearly 1,500 points, or 2.78 per cent, to 51,870.11 as of 11:01 PM IST. The S&P 500 plunged 3.60 per cent to 7,411.38, while the Nasdaq tumbled 4.77 per cent to 24,509.35, leading the losses among the three major US indices. The impact of US Midterm Elections is underway as Nasdaq fell after opening on Thursday. The Nasdaq dropped 198.95 points or 0.77 per cent, to 25,537.57 at the opening bell. The decline was driven by losses in chip and data centre-related stocks. At the time of writing this report (11:08 PM), Nasdaq shares were trading at $107.22, down 2.57 per cent on November 5, as of 12:41 PM GMT-5 (Greenwich Mean Time minus 5 hours).
When it comes to the remaining indexes, the Dow Jones Industrial Average rose 330.63 points, or 0.62 per cent, at the open to 53,686.75. At the time of writing this report, the Dow Jones Industrial Average was trading at 51,799.24, down 1,556.88 points or 2.92 per cent on November 5, as of 12:45 PM GMT-5 (11:15 PM IST). The S&P 500 fell 12.86 points, or 0.17 per cent, at the open to 7,675.76. At the time of writing this report, the S&P 500 was trading at 7,401.28, down 287.34 points or 3.74 per cent on November 5, as of 12:47 PM GMT-5 (11:17 PM IST).
As for specific stocks, NVIDIA shares fell 5.6% to their lowest since April. Tesla, on the other hand, declined 10%. At the time of writing this report, Tesla Inc shares were trading at $342.58 apiece, down $42.61 or 11.06 per cent on November 5, as of 12:49 PM GMT-5 (11:19 PM IST). Elon Musk’s other company, SpaceX, also recorded a decline of 7.5%. At the time of writing this report, SpaceX (Space Exploration Technologies Corp.) shares were trading at $123.86, down $12.06 or 8.88 per cent on November 5, as of 12:49 PM GMT-5 (11:19 PM IST).
Why are Nvidia, Tesla and SpaceX shares falling?
Investors appeared to be reassessing the outlook for technology and artificial intelligence (AI)-related companies following the election results. Market concerns have centred on the possibility of increased regulatory scrutiny of the AI industry and the rapid expansion of data centres under a Democratic-controlled Congress.
Democratic victories in key states have also drawn attention to growing local opposition to data centre projects, particularly over their electricity consumption, land requirements and environmental impact. This has raised concerns about whether the industry’s expansion could face additional hurdles.
Among individual stocks, Nvidia shares dropped 5.6 per cent to their lowest level since April. Tesla shares also came under pressure, declining around 10 per cent, while Elon Musk-led SpaceX fell 7.5 per cent.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)