S&P 500 Plunges 3.8% After Trump’s Record High Boast — SkimNews
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- 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 dropping over 6% and the semiconductor index falling nearly 11% on fears of Democratic-driven scrutiny of data-center expansion.
- Nasdaq Composite declined nearly 5% by midday, reflecting broad technology sector losses as investors reassessed regulatory risks following Democratic midterm gains.
- Bitcoin dropped below $76,000, reversing post-election gains as over $428 million in leveraged long positions were liquidated during the market turmoil.
- Circuit breaker thresholds were closely monitored, with the first halt level at a 7% S&P 500 drop (7,150.41 points), the second at 13% (6,689.09), and a full-day shutdown at 20% (6,150.89).
Why it matters: Tech investors and AI infrastructure firms face immediate valuation pressure as Democratic electoral success raises regulatory expectations, while a potential circuit breaker activation would mark the first market-wide shutdown since 2020, signaling extreme volatility tied directly to political outcomes and Fed uncertainty.
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