S&P 500 Plunges 3.8% After Trump Hailed Record Highs — SkimNews
Get the Geopolitics newsletter
Daily geopolitics — wars, elections, sanctions, the diplomatic moves that move markets. Free.
- S&P 500 fell as much as 3.8% Thursday, erasing the previous day’s gains and approaching the 7% drop threshold that would trigger a 15-minute market-wide trading halt.
- Trump celebrated Wall Street’s record highs on Truth Social Wednesday, claiming Americans' 401(k)s were 'through the roof,' just hours before the index plunged.
- AI and semiconductor stocks led the selloff, with Nvidia down over 6% and the semiconductor index dropping nearly 11% on concerns about Democratic scrutiny of data-center expansion.
- Nasdaq Composite dropped nearly 5% by midday, reflecting broad tech-sector losses as investors reassessed regulatory risks following Democratic midterm gains.
- Bitcoin fell below $76,000, reversing post-election gains as over $428 million in leveraged long positions were liquidated within an hour amid the broader market turmoil.
- Circuit breaker rules specify a 7% S&P 500 decline (7,150.41 points) triggers a 15-minute halt before 3:25 p.m. ET, with more severe thresholds at 13% and 20% for extended or full-day closures.
Why it matters: The sharp reversal threatens Trump’s narrative of economic success tied to market performance, while tech investors face immediate losses and regulatory uncertainty after Democratic gains. A circuit breaker activation would mark the first such halt in years, signaling extreme volatility driven by political and monetary policy fears.
Ask SkimNews
